Best Buy Best Buy for long term fixed rate mortgages

[Brendan Burgess]

Avant has introduced a 10 year mortgage in response to Finance Ireland's new product. Here are the comparisons.

Ireland’s lowest mortgage rates

Whether switching or purchasing, get Ireland’s lowest fixed rates from as low as 1.95%, only from Avant Money.

www.avantmoney.ie

Mortgage Rates | Irelands largest non-bank lender. .

Irelands largest non-bank lender. We are an Irish financial services provider established in 2002. We operate in various sectors, including commercial property lending, residential mortgages, motor finance, asset-backed lending and agri-finance.

www.financeireland.ie

 

[Brendan Burgess]

So, if you have a <60% LTV mortgage, would you go for ten years at 2.1% or 20 years at 2.6%?

I think that I would go for the 2.1% rate. With a low LTV, it's very likely that you will or could repay your mortgage over 10 years anyway.

Advantages of Finance Ireland

• You can repay 10% of the mortgage every year without penalty
• You can move the mortgage to a new home

So, if you are thinking of trading up, maybe you should go to Finance Ireland.

Availability

Avant is limited to the main urban areas, so they might not approve you for a loan anyway, in which case, the decision is made for you.

 

[Brendan Burgess]

If you expect to reduce your LTV, Finance Ireland will reduce your rate

If you are borrowing 90% for 10 years , First Ireland is 2.85% vs. 2.65% for Avant.

However, if your LTV falls either because you pay off capital, or due to house price inflation, First Ireland will give you the lower rate. It could fall to 2.4% if the LTV falls below 60%.

So you could end up with a cheaper loan from Finance Ireland.

I would probably opt for what is cheaper now, unless I had definite plans to reduce the mortgage quickly.

Brendan

 

[PolkaDot]

If you move to Avant on any of their fixed rates, and then want to move home within a couple of years, what are the options? Would you be forced into breaking out of the fixed term and potentially paying a break cost?

 

[Brendan Burgess]

Yes. But the way break costs are calculated, anyone fixing now is unlikely to face a large break cost.

If the Avant rate is the best for you now, go for it.

Brendan