Image Avant Money introduces Ireland's lowest 10-year fixed rate
Image Daragh Cassidy
Head Writer

Avant Money has stoked some much needed competition into the mortgage market with the launch of a range of marketing-leading fixed rates.

More good news on the mortgage front today!

Following on from the news that Finance Ireland is to introduce the country’s first ever 15-year and 20-year fixed rates, Spanish-owned Avant Money has introduced a range of new four-year and 10-year fixed-rates, which are now the lowest in the market. 

The lender has also reduced the rates on its seven-year fixed-rate product. 

Coming on the back of the recent shock news that Ulster Bank and KBC are to leave the Irish market, this has helped stoke some much needed competition, which can only be good for consumers...

What are Avant Money’s new mortgage rates?

Avant has introduced a new 10-year fixed rate for the first time.

For a first-time buyer with a 10% deposit, they can now avail of a 10-year rate of 2.65%, which hugely undercuts the recent best rate of 3.15% from Ulster Bank and even the new 2.85% rate from Finance Ireland that was announced only yesterday.

The Banking & Payments Federation Ireland (BPFI) says that the average first-time buyer mortgage is around €250,000. So someone borrowing this amount over 30 years would save almost €67 a month, over €800 a year, and over €8,000 over the 10-year term compared to Ulster Bank’s rate for example. 

Switchers with at least 40% equity, or first-time buyers who are lucky enough to have a deposit of this size, can avail of a 10-year rate as low as 2.10%, which again hugely undercuts the recent best rate of 2.80% from Ulster Bank and even the new 2.40% rate from Finance Ireland.

If a decade seems like too long to commit to a rate, Avant’s four-year rates might be more for you. These rates start from just 1.95% for those with a 40% deposit, up to 2.35% for those with a 10% deposit, and are again the lowest in the market. 

Loan-to-value ratio

4-year fixed rates

7-year fixed rates

10-year fixed rates

≥60%

1.95%

1.95%

2.10%

≥70%

2.10%

2.10%

2.25%

≥80%

2.20%

2.20%

2.35%

≥90%

2.35%

2.50%

2.65%

Follow-on variable rate of either 2.50% to 2.75% depending on LTV ratio.

More recently in June, Avant Money announced that it was shaking up the market even more by launching a new 30-year fixed-rate loan. Rates for this 30-year loan start at 2.85% and go to 3.10%.

Trend towards longer fixed rates 

Ireland has the joint highest mortgage rates in the Eurozone at over double the currency bloc’s average. However our longer-term fixed rates have represented particularly poor value until now so it is great to see competition and choice increasing here. 

Fixed-rate mortgages have long been popular in Europe. And while they have now almost become the norm in Ireland too, the length of the terms on offer have been far short of the 20 to 25-year terms that are commonly available in other EU countries.    

Several lenders in Ireland such as PTSB, EBS and ICS Mortgages still only offer five or seven-year rates at best. 

Fixed-rate mortgages can give mortgage holders financial stability and peace of mind because they know their monthly mortgage repayment won’t change for a set period of time. If you're unsure of the pros and cons, check out this guide we previously wrote.

Upheaval

The Irish banking sector is going through huge upheaval at present with the recent announcements that both Ulster Bank and KBC plan on leaving the market over the coming years.  

As such today’s news from Avant Money, coming right on the back of yesterday’s news about a new 20-year fixed rate from Finance Ireland, is hugely welcome.

Strong competition is needed now more than ever as PTSB, AIB and BOI could end up with well over 80% of the mortgage market if the loan sales associated with Ulster Bank and KBC’s exits go through.

However it appears both Avant and Finance Ireland have their eyes on a large share of that prize!

Back in April, Avant Money announced that it was expanding its low-cost mortgage rates to a range of new locations nationwide.

Consider all the lenders

Avant Money and Finance Ireland are still not household names in Ireland and many of you might be tempted to go to more well-known lenders such as AIB and BOI as your first port of call.

However recent developments clearly show that it is the smaller, newer lenders who are offering some of the best value right now so if you’re on the hunt for your first home or looking to save money by switching your mortgage you should definitely consider these lenders for your needs.   

We recently discussed new mortgage offerings from Avant Money and Finance Ireland in a recent episode of our bonkers.ie podcast, Mortgage Movement. Be sure to have a listen if you’re interested in longer-term fixed-rates!

If you’re considering applying for a mortgage, you may want to keep these 9 common mistakes to avoid in mind. And if you’re looking for advice on how to get your mortgage deposit together, we’ve also got you covered with this piece.

Start your mortgage journey with bonkers.ie

Whether you’re a first-time buyer, home mover or switcher, you can easily compare interest rates, offers and cashback incentives from all Ireland's lenders using our mortgage calculator

And when it’s time to apply for your mortgage, you can submit an online enquiry through our new mortgage broker service and one of our experienced financial advisors will call you back to get your application started.

You’ll be happy to hear that our mortgage broker service is entirely free and is fully digital from start to finish, meaning everything can be carried out online from the comfort of your home. And it's completely paper-free too! 

To find out more about our mortgage broker service, see here and to learn about how your mortgage application will be assessed, take a look at this guide.

Let’s hear from you! 

Are you in the middle of trying to buy a home? What do you think about today’s news? Get in touch and let us know.  You can contact us on Facebook, Twitter or Instagram.

And remember, you can compare all rates across all lenders on bonkers.ie right now with our free and easy-to-use mortgage calculator.