Avant Money, the mortgage provider owned by Spanish banking group Bankinter, became the first lender in the Irish market to offer a fixed rate covering the entire term of a standard 30-year mortgage.
The lender, which was officially known as Avant Card, is a provider of mortgages, personal loans and credit cards to 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 program on Friday. The new product will bring increased competition to the Irish mortgage market. Finance Ireland is the only other lender to offer fixed mortgage rates above 10 years.
The One Mortgage program will allow clients to lock in to a fixed interest rate at a time when interest rates are at an all time low. Mortgage rates will start at 2.25 percent, with pricing depending on the client’s loan-to-value (LTV) ratio and the length of the preferred mortgage.
The cheapest rate available under the program is 2.25 percent on a 15-year 60 percent LTV loan. This rate is 0.25 percent lower than that of Finance Ireland.
On the other end of the spectrum, a 90 percent 30-year LTV will cost the borrower 3.1 percent. Finance Ireland does not offer a fixed rate beyond 20 years.
Avant Money said it would also provide customers with the flexibility to adapt as their circumstances change over time.
This includes a new annual overpayment limit of 10 percent and prepayment charges capped at 2 percent, which further decrease to 1.5 percent after the 10th year, making them lower than Finance Ireland. during the first decade.
Brian Lande, Mortgage Manager at Avant Money, said: “We are delighted to launch this innovative new product, which offers Irish consumers the ability to lock in fixed rates for the duration of their mortgage at a time when interest rates are at their all-time low.
“We recognize that flexibility is important for customers, as individual circumstances can change. That’s why we’ve added new features like the 10% overpayment allowance, capped early redemption fees, and move options.
“This product offers an attractive option for customers who want confidence in their monthly expenses, long-term savings and flexibility. I am 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 25 through the group’s panel of preferred mortgage brokers. A full list of these brokers is available on the company’s website.
Avant Money is based in Carrick-on-Shannon, County Leitrim, with a second office in Dublin. It employs 250 people and has provided credit cards and personal loans to Irish consumers for over 20 years.
Its parent company, Bankinter, is Spain’s fourth-largest bank in terms of market capitalization. In December, its total assets stood at 100.8 billion euros, while total loans stood at 64.6 billion euros and the solvency ratio was 15%, one of the most the Spanish financial services sector.
Avant Money offers mortgages in all residential real estate markets, including first-time homebuyers, movers and mortgage switches.
They are available in Dublin, Cork, Galway, Limerick and Waterford, their surrounding suburban belts, as well as Athlone, Carlow Town, Dundalk, Kilkenny City, Portlaoise and Wexford Town.