Avant Money, the mortgage provider owned by Spanish banking group Bankinter, has become first lender in the Irish market to offer a fixed rate covering the entire length of a standard 30-year mortgage.
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 partners Chill Money and An Post Money.
The group announced details of its One Mortgage scheme on Friday. The new product will bring added competition to the Irish mortgage market. Finance Ireland is the only other lender offering mortgage fixed rates for longer than 10 years.
The One Mortgage scheme will allow customers to lock into a fixed interest rate at a time when interest rates are at a historical low. One Mortgage rates will start at 2.25 per cent, with pricing dependent on a customer’s loan-to-value (LTV) and preferred mortgage term.
The cheapest rate available under the scheme is 2.25 per cent on a 15-year 60 per cent LTV ratio loan. This rate is 0.25 per cent lower than that of Finance Ireland.
At the other end of the spectrum a 90 per cent LTV over 30 years will cost the borrower 3.1 per cent. Finance Ireland does not offer a fixed rate beyond 20 years.
Avant Money said it would also offer customers the flexibility to adapt to their changing circumstances over time.
This includes a new 10 per cent annual overpayment limit and capped early redemption fees of 2 per cent, which reduce further to 1.5 per cent after year 10, making them lower than Finance Ireland’s over the first decade.
Avant Money head of mortgages Brian Lande said: “We’re delighted to launch this innovative new product which offers Irish consumers the opportunity to lock into fixed rates for their full mortgage term at a time when interest rates are at a historical low.
“We recognise that flexibility is important to customers as individual circumstances can change. This is why we have added new features such as the 10 per cent overpayment allowance, capped early redemption fees, and options should you move home.
“This product provides an attractive option for customers who want certainty on their monthly outgoings, long term savings, and flexibility. I’m also delighted to confirm that we will be extending these new flexible features to all of our existing and new customers.”
The new mortgage products will be available from June 25th via the group’s preferred mortgage broker panel. A full list of these brokers can be found on the company’s website.
Avant Money is based in Carrick-on-Shannon, Co Leitrim, and has a second office in Dublin. It employs 250 staff and has been providing credit cards and personal loans to Irish consumers for over 20 years.
Its parent, Bankinter, is the fourth largest Spanish bank by market capitalisation. As of December its total assets were €100.8 billion, while total lending was €64.6 billion and the solvency ratio was 15 per cent, one of the highest in the Spanish financial services sector.
Avant Money offers mortgages across all residential home markets, including first-time buyers, home-movers and mortgage-switchers.
They are available in Dublin, Cork, Galway, Limerick and Waterford, their surrounding commuter belts, as well as Athlone, Carlow Town, Dundalk, Kilkenny City, Portlaoise and Wexford Town.