Best Buy The Avant Tracker mortgage is a clear Best Buy and people should consider switching to it

Why do we say getting a tracker at 0.9% is good value Brendan? Ordinarily, over decades, I would agree. Yet, fixed rates are relatively low right now, so a minimum or non existent premium for certainty - with cash backs I think one can fix around 3.2% effective?

There is absolutely no certainty at the moment that Euribor or ECB rates will continue to decrease - lots of uncertainty and shock potential at moment.

Can one get off this Avant tracker quickly if rates start to increase and some competitors have linger "low" fixed rates available one wants to grab?

This also feels a bit hybrid in terms of fixed and variable? Typically a variable might change more than once per year? I had this product in another country and it was updated quarterly.
 
@presidenttttt

We had these discussions 20 years ago when people were fixing and many of us on askaboutmoney were telling people how valuable trackers were. But many brokers recommended fixed rates "for the certainty". Those borrowers paid heavily for it over the following years with the highest variable and fixed rates in the eurozone.

It's even worse for the unfortunate borrowers whose mortgages were sold to the vultures.

You should not be lulled into a false sense of security by comparatively low short-term fixed rates and cash back.

The tracker margin of 0.9% over euribor means that the rate will be set by the money markets for the full term of the mortgage and not by the banks' whim and caprice.

If you can get a 20 year fixed rate compared to the tracker rate, then it's worth considering.
 
Last edited:
The longest fixed term offered by the mainstream banks is ten years

1748342017951.png


1748342032089.png


No one knows what way rates will go.
But I am guessing that over the next ten years, you would be better off on Euribor + 0.9% than BoI 4.4%

And after the ten years, you may be at the mercy of the bank.

And variable rates have the big advantage of flexibility. You can pay off the mortgage, in whole or in part, early without penalty.
 

Attachments

  • 1748342000131.png
    1748342000131.png
    143.9 KB · Views: 42
Last edited:
Brendan Burgess said:
The tracker margin of 0.9% means that the rate will be set by the ECB for the full term of the mortgage and not by the banks' whim and caprice.
Click to expand...
Just to note that Euribor is set by the EMMI (European Money Markets Institute) and not the ECB but I guess it's strongly influenced by ECB rates.

About Euribor® | The European Money Markets Institute (EMMI)

Euribor® is the rate at which wholesale funds in euro could be obtained by credit institutions in the EU and EFTA countries in the unsecured money market
www.emmi-benchmarks.eu www.emmi-benchmarks.eu
Edit: previous discussions about Euribor v ECB rates...

 
Last edited:
Why do we say after 10 years we are at mercy of the bank? When fixed rate is over people should be shopping around - as I am doing now.

In general, I am aligned that variable product like Avants should work out well over long term, just not sure it is a no brainer.
 
presidenttttt said:
When fixed rate is over people should be shopping around - as I am doing now.
Click to expand...

1) All the banks may be extorting customers as they did for most of the last ten years, so shopping around will still result in an excessive variable or fixed rate
2) You may not be able to switch and may have take whatever rate your lender or vulture fund offers you

Key Post - Some reasons why you may not be able to switch your mortgage

Reasons why you may not be able to switch your mortgage Review the below list to see if there are any reasons why you might not be able to switch to another lender at the moment. But also ask yourself if any of the following reasons might apply to you in a few years' time. If you switch now to...
www.askaboutmoney.com
 
www.rte.ie

Avant Money cuts mortgage rate below 3%

Avant Money has announced interest rate reductions on its new Flex Mortgage product, with rates now starting from just 2.98%.
www.rte.ie www.rte.ie

The rate on the Flex mortgage is now at 2.98%.


"Introduced in March, Avant Money said its Flex Mortgage rate is now 0.77% lower than the next best available variable rate from other lenders."


I will recommend this mortgage to anybody I know thinking of switching lenders.
 
Personally, I think a fixed-rate of 3.4% for the lifetime of the mortgage, plus 1% cash back, is a better deal than the flex mortgage offering.

I wonder does Avant allow borrowers to split their mortgages between the different offerings?
 
Sarenco said:
I think a fixed-rate of 3.4% for the lifetime of the mortgage, plus 1% cash back, is a better deal than the flex mortgage offering.
Click to expand...

3.4% for 30 years does seem attractive.

I presume that you would agree with me that the flex mortgage is more attractive than a 5 year or 10 year fix with another lender?

I have never liked long-term fixes because of the very high rates, but 3.4% fixed for 30 years must be worth considering.
 
I guess it's difficult to put a price on certainly but the longer term forecasts are for rates to continue to decline.

I think in general the Eurozone should continue to lag, and that absences in tech should be deflationary.

That being said...a mortgage term is a long time. So who knows.
 
I'm on the AIB 3% 3 Year Fixed <50% since September 2024

€583 per month
€138,293 remaining balance
30 years remaining

Is Avant Flex something I should be considering?

Any responses very much appreciated as always!
 
Seems to me that your 3% fixed rate may be as close to what you might get from Avant as makes no difference - even before remortgaging costs are accounted for (not sure if Avant cashback might also apply?)? Might be better to review the situation at the end of your fixed rate term in September 2027?
 
Yes ClubMan, that's pretty much my feeling on it too, I guess part the reason I posted, is I couldn't bank on Avant still offering the 'for the life of your mortgage' when my fixed ends in 2027
 
I have just requested the break fee.

No cash back on the Avant Flex so is it correct to say it'll cost about 1,200 to 1,500 for the switch with just the solicitor requirement?

Thank you
 
You must log in or register to reply here.
Back
Top