Spanish Bank Transforms Irish Mortgage Market

Spanish mortgage provider Avant Money has just introduced a new range of products that have the potential to transform the Irish mortgage market. Avant Money has become the first mortgage provider in Ireland to offer a 30 year, fixed rate mortgage. In this type of mortgage, the repayments will be the same every month for the entire 30 year lifetime of the loan. Avant Money’s new fixed rate mortgages have lifetimes between 15 and 30 years, and offer rates as low as 2.25 %. These new long term offerings were introduced shortly after Finance Ireland shook up the market with its innovative 20 year mortgage. These latest moves by brokers represent a huge step for the Irish market, as product offerings here are beginning to more closely resemble that of Spain and France.

Because wholesale interest rates are currently at historic lows, homeowners in Ireland are more increasingly taking out longer term fixed rate loans. Avant Money’s new portfolio of products includes 15 year, 20 year, 25 year, and 30 year fixed rate mortgages, and the rates vary based on the amount being borrowed relative to the value of the home. For prospective owners taking out a 30 year loan, and borrowing¬† 60% or less of the value of the home, the rate of 2.85% will apply. For those borrowing 80% of the value of the home and taking out a 30 year loan, a rate of 3.1% will apply. For those taking out a 15 year loan and borrowing 60% or less of the value, a rate of 2.25% will apply. Avant Money’s rates across the board are considerably lower than its competitors, with their lowest offering being at a rate of 1.95%. Its new products are flexible as well, as the Spanish lender allows borrowers to overpay up to 10%. These new mortgages will also include a cap on fees for redeeming the mortgage and a range of flexible options for movers. For example, those moving will be able to transfer the existing mortgage to their new home.

While movers and switchers project to make up the majority of those customers taking advantage of the new rates, first time buyers with large deposits may find these fixed rate products attractive as well. These new offerings will allow Irish customers to lock themselves into long term fixed rates at a time when interest rates are historically low. These innovative new products, along with Avant’s lowest in the market four and 10 year fixed rates, put Avant in good position to significantly grow its market share in Ireland. The Spanish provider is currently aiming to become the fourth largest provider of mortgages here, alongside AIB, Bank of Ireland, and Permanent TSB.

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