DUBLIN: The mortgage provider Avant Money is to introduce a new deal that will offer mortgages at a fixed rate for a period of 30 years. The move comes shortly after Finance Ireland said it would introduce 20-year fixed-rate home loans. With this, private-sector competition in the mortgage market is expected to heat up.
The announcement by both companies is expected to force other firms to experiment further in the mortgage industry. The new event money products will be available from June 25th.
Avant Money offers mortgage holders the ability to manage their entire term at a fixed rate. Rates for the 30-year term start at 2.85% for a loan-to-value (LTV) ratio of 60%. The lowest rate available through the One Mortgage is 2.25% on a 15-year 60% LTV ratio loan.
Under the 30-year scheme, the borrower will get a mortgage with an interest rate of 3.1%. The Avant Money scheme also includes an annual overpayment limit of 10% of the annual balance, similar to that of Finance Ireland.
The early redemption fees on the One Mortgage are capped at 2%, dropping to 1.5% after year 10. This is less than Finance Ireland’s first decade. There is also the attraction that the early redemption fees will be refunded if a borrower moves home and keeps their mortgage with the provider.
“This product provides an attractive option for customers who want certainty on their monthly outgoings, long term savings, and flexibility,” said Brian Lande, Head of Mortgages for Avant Money.
Avant Money
Avant Money, a company owned by Spanish banking group Bankinter, provides mortgages, personal loans and credit cards on its own and through Ann Post Money, Chill Money and other partners.
Its mortgages are also available through some mortgage brokers. Its loans are available to first-time buyers, mover and switchers in Dublin, Cork, Galway, Limerick and Waterford as well as their commuter belts. They are also available for residents of Athlone, Carlow Town, Dundalk, Kilkenny City, Portlaoise and Wexford Town.
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