Avant Money is raising its mortgage rates for the third time this year

MORTGAGE lender Avant Money is the latest to hike interest rates.

Fixed interest rates and subsequent variables will increase by an average of 0.75 percentage points starting tomorrow.

Some interest rates increase by 1 percentage point.

Customers with a current offer letter who take out their mortgage by January 20th will receive the current rates.

However, there is no immediate change for existing customers.

It’s Avant Money’s third rate hike this year.

The lender, which is headquartered in Leitrim and owned by Spans BankInter, said the move came amid interest rate hikes from the European Central Bank and rising funding costs.

Avant Money continues to offer its One Mortgage product and is now the only lender in Ireland to offer fixed rates for more than 10 years, it said.

Brian Land, Head of Mortgages at Avant Money, said: “We continue to see interest rates rising and unfortunately pass this on to our customers. Our One Mortgage is an attractive alternative for clients who want the peace of mind of knowing exactly what their monthly mortgage payment will be, and knowing that that won’t change if interest rates continue to rise.

“One in ten Irish consumers has chosen Avant Money for their mortgage in 2022 and we look forward to offering our customers even more innovative products over the next year.”

Avant Money rocked the market here when it launched mortgages at rates just under 2 percent about two years ago.

Broker Michael Dowling said the recent increases mean Avant Money’s interest rates are now in line with AIB and Permanent TSB.

The three-year fixed rate will increase from 2.25 percent to 3.25 percent for a borrower with a credit rating of 60 percent or less.

The five-year fixed rate for a first-time buyer couple with a 90 percent loan value ranges from 2.9 percent to 3.8 percent.

Mr Dowling said this meant the monthly borrowing cost for every €100,000 would be €50 more than the three-year rate.

Already this year, AIB has increased the cost of its fixed prices twice in the last two months.

At AIB, EBS and Haven, they each rose by 0.5 percentage points.

And the Ulster Bank said it would increase its fixed rates by 0.75 percentage point.

Ulster Bank’s new rates will only apply to its existing customers as the exiting bank will no longer offer mortgages to new customers.

Permanent TSB increased its fixed rates by an average of 0.45 percentage points, with the Bank of Ireland opting for a 0.25 per cent increase.

None of the three largest banks have increased their variable interest rates.

ICS Mortgages and Finance Ireland have each hiked rates on certain products since the ECB first hiked rates in July.

And there are more rate hikes on the way.

Tracker and adjustable rate mortgage holders are in for another big financial hit as the European Central Bank is set to hike interest rates again next week.

Central Bank of Ireland Governor Gabriel Makhlouf has warned of another mega hike of 0.5 percentage points.

When that is announced next week, it means that the annual cost of repaying a €200,000 mortgage has skyrocketed by nearly €3,000 in one year.

It is the fourth wage increase since the summer.

Avant Money offers mortgages, personal loans and credit cards under its own brand and through An Post Money, Chill Money and other partners.

Mortgages are available through certain mortgage brokers, and loans are available to first-time buyers, movers and converts.

https://www.independent.ie/business/personal-finance/property-mortgages/avant-money-raises-its-mortgage-rates-for-the-third-time-this-year-42202318.html Avant Money is raising its mortgage rates for the third time this year

Fry Electronics Team

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