Just looking for a bit of advice, we recently signed a 1.95% Mortgage agreement for 7 years with Avant for about 260K but I am now starting to think that we should have agreed to a much longer term fixed rate with the way that the market is going, i.e to pay a higher rate for longer period. I believe the longest we can get is 10 years. Is it worth going back to Avant or is 7 years sufficient term for there to be possibly a turn in the market again the other direction? Just looking for advice on whether to just hold tight at this stage or re-visit our decision. Thanks.
Recently agreed 1.95% with Avant for 7 years
- Thread starter Peloton
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AAAContributor
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That's a terrific rate. I see Avant offering 7 yr <=60% LTV deals @ 2.95%. Is it a typo or how did you secure such a good rate?
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
@AAAContributor Avant had 1.9 % for 7 years until July this year and then increased their rates. Same as Haven, they had great rates for months and pulled them. The other 1.9% green mortgage is Boi but they’re known to not offer current customers good rates only new customers.
NoRegretsCoyote
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I'd be astonished if they offered it to you. Their funding costs have shot up since you agreed that mortgage.
That 1.95% won't be seen on the Irish market for a long time. As of today it's cheaper than a tracker mortgage!
You got a great deal, be thankful
Is the prevailing wisdom then to pay off as much of the mortgage as possible while locked into the fixed rate?
Surely it depends on the individual's specific situation and circumstances? E.g. if they have other higher cost unsecured loans then they should almost certainly be prioritised. If they don't have sufficient pension cover then that might be another priority. If they have family demands on finances then these should probably be prioritised over the mortgage. And so on...
Assuming the individual has sufficient pension provision and no other debts, it would seem prudent to pay down as much of the mortgage as possible while on a low rate, to reduce the risk of being unable to service the mortgage when the fixed rate ends if rates are higher.
The alternative is to hoard the cash, and have it on hand, to pay down the mortgage when the fixed rate ends.
Gordon Gekko
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You’d be insane not to take what’s on offer.
1.95% for 7 years is superb given the move in rates.
time to plan
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Agreed. I'm very smug about securing that exact deal in April. Securing it now is an incredible deal. 10 years fixed rate from Avant is 3.40% so doesn't make sense to swap to that from current deal on the plate.
There might be a case for locking in a higher rate - albeit for longer - if you thought you would be stretched financially in 7 years. The cheapest rate is not always the best rate.
However, Avant are not known for aggressively lending. So I imagine you're in a reasonable financial position. 7 years is a reasonably long period of time to have certainty. Who knows where rates will be in 7 years. Who knows where your salary will be either.
You have certainty for the rest of the decade, that's a great place to be.
However, Avant are not known for aggressively lending. So I imagine you're in a reasonable financial position. 7 years is a reasonably long period of time to have certainty. Who knows where rates will be in 7 years. Who knows where your salary will be either.
You have certainty for the rest of the decade, that's a great place to be.