Avant Money to hike mortgage rates by up to 0.25% from Monday

Avant Money, the mortgage provider owned by Spanish banking group Bankinter, will increase its mortgage interest rates by up to 0.25 per cent from Monday following the recent rate hike from the European Central Bank.

The lender, which was formally known as Avant Card, is a provider of mortgages, personal loans and credit cards in the Irish market, both under its own brand and through its partner An Post Money.

The lender said its three-, four-, and five-year short-term fixed rate products will increase by between 0.15 and 0.25 per cent.

Variable rates will increase by 0.25 per cent, while longer term fixed rate products are unchanged with rates starting at 3.95 per cent.

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Those who have already applied for a loan have until September 29th to draw down their mortgage at existing rates.

Avant Money, based in Carrick-on-Shannon, Co Leitrim, took about a 10 per cent share of new mortgage activity in Ireland last year to become the leading nonbank lender in the market at a time of heightened mortgage switching activity.

Association of Irish Mortgage Advisors chairman Trevor Grant said the announcement was “not unexpected” and that further similar announcements can be expected from other lenders in the coming weeks.

The ECB has embarked on an unprecedented hike in interest rates over the past year in order to get a handle on spiralling inflation.

“The level of the respective increases is modest and this is good news for many mortgage customers, if there can be good news regarding a rate increase announcement,” said Mr Grant.

“Short and long-term fixed rates are close to converging which is unusual and highlights the relative value of the longer rates, which provide more certainty.

“This is particularly relevant for many mortgage holders whose fixed rates are maturing in the coming months with some excellent value available, particularly in the longer-term fixed rates of seven years or more.

“The concept of ‘fixing and forgetting’ is becoming increasingly popular with mortgage holders who do not wish to get slammed by significant increases in their mortgage repayments.”

Avant Money offers mortgages across all residential home markets, including first-time buyers, home-movers and mortgage-switchers.