Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

[noelÓm]

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps.

Avant Money to increase some mortgage rates

Mortgage provider Avant Money is to increase some of its interest rates for new customers as a result of rising funding costs.

www.rte.ie

Their 3- and 4-year rates will remain unchanged, while 25- and 30-year rates will fall.

I don't see a clear press release with the details.

Avant are second to raise rates, with ICS recently moving to raise rates in recent weeks.

 

[ryaner]

those in the application pipeline will have until 15 July to complete drawdown at the old rates

At least that is something.

This is likely still just the beginning of the increases.

 

[Páid]

The 1.95% 7 year fixed rate will increase to 2.25%. is that correct?

 

[SusanS]

I had the same reaction. I can confirm the 7 year rate is going to 2.25% - my broker told me yesterday. But in my case, I will get my drawdown done before their July deadline so I still get the 1.95% rate. And I get to lock in my rate just before what looks to be a lot of increases across all banks. I’m delighted.

The broker also suggested I could consider the 2.50% rate for 30 years. That’s a tempting offer but I think I’ll take my chances for seven years and see then.

My only worry is that it took a while to get approved so hopefully everything happens as expected from here. Otherwise I might be back here for some advice.

PS Delighted with broker at Irish Mortgage on Baggot St - can’t fault their knowledge on this.

S.

 

[dubdub123]

I have avant loan 212K over 19 years and I fixed for 10 years at 2.1%. I could have fixed for whole term at I think 2.5%.
Wondering know if I should look into this. I dont know if id have a break fee. Drawdown was last year. Would i have to submit bank statements etc again? Can i sort this directly with Avant or do i need to go through broker again?

 

[Paul F]

I have avant loan 212K over 19 years and I fixed for 10 years at 2.1%. I could have fixed for whole term at I think 2.5%.
Wondering know if I should look into this. I dont know if id have a break fee. Drawdown was last year. Would i have to submit bank statements etc again? Can i sort this directly with Avant or do i need to go through broker again?

@dubdub123 Your break will almost certainly be zero, but ask Avant for a break fee quote.

I would imagine that you would deal with Avant directly about the rate change.

Note that the Avant loan offer says that you are not allowed to switch to a different fixed rate while you are in the middle of a fixed rate (see here). But note that user @Acorn22 at least attempted to do this (see here) and was sent a letter with the various rates, and they ticked the One Mortgage. We don't know if they were successful in changing rates.

The relevant interest rate for you for fixing for the whole term is 2.45%, but it will increase next Friday (probably by 0.2% or 0.3%). So you'll need to move fast. But ask yourself if you really need to fix for the whole term. If you end up making overpayments over the next decade, you will reduce your monthly repayment, or you could shorten the term. (Reducing the monthly repayment is the recommended approach.)

 

[Paul F]

The decreases in the interest rates for the 25-year and 30-year products (the "One Mortgage") are big!

One Mortgage

www.avantmoney.ie

Note that with the One Mortgage, you have to fix for the same number of years as are remaining on your mortgage. E.g., if there are 14 years left on your mortgage, you have to fix for 14 years (and you are eligible for the rates for the 15-year product).

Or to put it another way: if you want Avant's 15-year rate, the term remaining or your mortgage has to be 15 years or less. If your term remaining is longer than that, you could shorten your mortgage term to 15 years (but that would mean a higher monthly repayment than not shortening the term).

 

[Brendan Burgess]

Hi Paul

There are so many rates, it's hard to give a full picture. Is this correct?

30 years at 2.5% seems like good value.

 

[peemac]

Hi Paul

There are so many rates, it's hard to give a full picture. Is this correct?



View attachment 6241
30 years at 2.5% seems like good value.

30 years works out at €395 per €100,000 per month.

Or a €400,000 mortgage will cost €1580 a month and you can totally ignore any news about rates increasing (or decreasing) and budget long term without having the variable of the mortgage.

For many new house buyers this has to be an exceptionally attractive option.

 

[Paul F]

There are so many rates, it's hard to give a full picture. Is this correct?

The rates in your table are correct for LTV<=60%. But the increases (and decreases) are broadly similar to those shown in the table for the other LTV bands.