Image Avant Money increases mortgage rates by up to 1%
Image Rob Flynn
Staff Writer

Avant Money is increasing its fixed mortgage interest rates, effective from Monday 15th August. Some rates will increase by as much as 1%.

Avant Money has become the latest lender to announce an increase to its mortgage interest rates - and for the second time this year.

It’s increasing its three, four, five, seven and 10-year fixed rates for new borrowers by between 0.30% and 1% from 15th August.

Back in May Avant announced its first rate increase of the year.

The move comes days after rival lender ICS Mortgages announced significant restrictions to its mortgage lending criteria.

Here’s all you need to know about the rate increases from Avant.

Rate increase

Avant is increasing its fixed rate mortgages across all its fixed-rate terms, with a flat 1% increase to all its 10-year fixed rates.

Among the substantial changes include a 0.70% increase to its 7-year fixed rates, a 0.50% increase to its four and five-year fixed rates, and an increase of 0.30% to its three-year fixed-rate mortgages.

The Spanish lender at one time had some of the lowest rates in the market, but the recent percentage rate increase from the European Central Bank has forced the lender to increase its rates twice in the space of three months.

You can see all Avant's new rates across all LTVs up to 10 years in the table below.

Fixed rate

60% LTV

70% LTV

80% LTV

90% LTV

3 years

2.25%

1.95%

2.35%

2.05%

2.45%

2.15%

2.50%

2.20%

4 years

2.45%

1.95%

2.55%

2.05%

2.65%

2.15%

2.65%

2.15%

5 years

2.65%

2.15%

2.75%

2.25%

2.85%

2.35%

2.90%

2.40%

7 years

2.95%

2.25%

3.05%

2.35%

3.15%

2.45%

3.25%

2.55%

10 years

3.40%

2.40%

3.50%

2.50%

3.60%

2.60%

3.70%

2.70%

Avant Money is also increasing its longer term One Mortgage fixed rates from August 15th. These will increase by 1% across the board. 

You can see all of the new rates also in the table below.

Mortgage term

60% LTV

70% LTV

80% LTV

90% LTV

Up to 15 years

3.40%

2.40%

3.55%

2.55%

3.65%

2.65%

3.85%

2.85%

Up to 20 years

3.50%

2.50%

3.65%

2.65%

3.75%

2.75%

3.95%

2.95%

Up to 25 years

3.50%

2.50%

3.65%

2.65%

3.75%

2.75%

3.95%

2.95%

Up to 30 years

3.50%

2.50%

3.65%

2.65%

3.75%

2.75%

3.95%

2.95%

Reason behind the increase

Avant Money has said that market funding costs “rising sharply” this year has left it with no choice but to increase its mortgage rates for a second time in 2022.

It also mentioned the high interest rate environment as a strong factor in its decision, saying that while one ECB rate change was already announced, more are anticipated.

Notice for existing customers

Thankfully, existing Avant Money fixed-rate mortgage customers don’t have to worry about the above rate increases as they will not be affected.

Follow-on variable rates are subject to change however. Avant’s follow-on variable rate will change to 2.45% from its previous 2.00% for LTVs up to 70%. For LTVs above 70% the rate will change to 2.70% from 2.20%.

What if I'm in the process of applying for a mortgage with Avant?

If you've already submitted a mortgage application in full to Avant, you can still avail of the old rates if you have a Letter of Offer before 15th August 2022 and you complete your drawdown by close of business on Friday 9th September.

The lender also said that to guarantee drawdown in this period, all legal packs and all associated documents must be submitted to Avant Money and confirmed as correct by Friday 2nd September.

Any mortgage drawn down after the dates outlined above will be subject to the new, higher rates.

Compare mortgage rates on bonkers.ie

Are you a first-time buyer or a switcher looking to avail of a cheaper rate?  

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You can use bonkers.ie to compare insurance quotes and sign up to a policy in under an hour.

Get in touch

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