Avant Money overpayments and early break fees now much more flexible

[banjopotato]

Just got notification from Avant in the post that they are introducing significant flexibility on early repayments and overpayments of fixed-rate mortgages.

For early redemption, you now pay the lesser of a) the old breakage formula or b) 2% of outstanding mortgage (1.5% after the 10th year of loan term).

As for overpayments, they used to allow only 1% of total loan in any 12 month period. Now, you can overpay up to 10% of the balance (based on 1 January balance) per calendar year, with a maximum of two overpayments per year.

Also, the early redemption fee will be waived if you move home and take a new mortgage with Avant within 12 months.

 

[Brendan Burgess]

Banjo

That is great thanks.

So you took out a mortgage before they introduced this new flexibility and they apply it to their existing mortgage book as well.

Brendan

 

[banjopotato]

Yes. Available for all customers on fixed rates.

 

[Leighlinboy]

So if you were deciding between fixing for 5 and 7 years there isnt much difference ?
1. Breakage fee is roughly the same , albeit 2% of reducing balance is cheaper the later you go
2. If you traded up with them would they let you take the outstanding balance over at the 2.05% , and then remaining gap at whatever rate is at the time ?

 

[Paul F]

2. If you traded up with them would they let you take the outstanding balance over at the 2.05% , and then remaining gap at whatever rate is at the time ?

No, Avant don't do it like that. They will waive or refund the break fee if you move home and take a new mortgage with them (of at least the same term and balance) within 12 months. But the interest rate on the new mortgage will be whatever rates they are offering when you take out the new mortgage.

Note that Finance Ireland's long-term fixed rates (10 years and longer) do offer exactly the benefit you are describing – they waive or refund the break fee and you get to keep you original interest rate.

If you already have a mortgage and you want more info on your situation, please post your details in the switcher thread.