Avant or KBC ?

K

Keea21

Registered User
Messages
4
Hi,
Looking for some advice please. Looking to switch mortgage and do top up for a renovation.
LTV <60% so 2 options for 3 year fixed
1.95% with Avant or
2.25% with KBC
KBC will give €3000 cash back.
Is KBC the better option over 3 years seeing as we will need to pay architect for renovation as it will require planning? So 3K will cover that fee.
Thanks in advance for any steer on this.
 
Really depends on how much you're planning on borrowing. But as a very rough guide the 3K cashback is better value for a mortgage of €340K or less. Anything north of €380K and you'd probably be better off with Avant (i.e., interest savings over 3 years >€3k). The €40K in the middle is a grey area without specific details such as mortgage term.

Do both banks offer top-up/renovation mortgages (at those rates?)
 
Thanks for your reply. Current mortgage is 178K and will be looking for 60K top up. Will probably put over 18 year term.
Have been in touch directly with KBC who do offer top up at that rate. Have to check if Avant do. Will call broker. I was leaning towards KBC too because of the 3K cash back but the 7 year fixed is attractive too with Avant at 1.95%.
Does it make sense if I fix with KBC for 3 years, get the 3K cash back and look at switching again after 3 years if Avant still have better rate?
 
Based on those numbers you'll pay about €2k more in interest with KBC over those 3 years but obviously that will be offset by the cashback.


It's a good approach to re-evaluate regularly especially at the end of a fixed rate period. I wouldn't just limit to to Avant. Another cash back offer might be more beneficial if they're still around then.
 
Thank you. Yes that’s what I was thinking.
Will call Broker anyway to suss out Avant. I guess if I take the 3K out of the equation (e.g. can come up with it in savings) then it make sense to go with the Avant 1.95% rate if that’s available for the top up too?
 


You'll be approximately €1k better off going with KBC (3k cash less 2k extra interest). What you spend the money on is up to you.

The less money you borrow the better value the cashback is.
 
Has anyone remortgaged with avant? Do you have to go through a broker and Does the broker charge a fee? Also do avant allow you to release some equity for for home improvements?
 
Society said:
Do you have to go through a broker
Click to expand...
Yes.

Society said:
Does the broker charge a fee?
Click to expand...
Some do. However the broker receives 1% of the amount you draw down as commission from Avant.

I'd be happy with a broker charging a fee that's refunded if you draw down, but I don't see why the broker should be paid by both lender and borrower.

Society said:
Also do avant allow you to release some equity for for home improvements?
Click to expand...
Yes, but they are stricter than other lenders.
 
I'm curious about this "equity release" reluctance that is being mentioned. Surely a bank will look at the amount you want to borrow, your repayment ability and the value of the secured property and make a decision on that. Why should they care what your existing mortgage balance is?
 

Well, the existing balance will remain outstanding, so they can't just ignore it.
 
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