Avant Money Introduces Flex Mortgage: A New Era for Variable Rates in Ireland

Avant Money, a subsidiary of Spanish banking group Bankinter, is revolutionizing the Irish mortgage market with the launch of its innovative Flex Mortgage. This new variable-rate product is benchmarked against the 12-month Euro Interbank Offered Rate (Euribor), marking the return of tracker-style mortgages to Ireland after more than 15 years. This product will become available to us from Mid April onwards.
The Flex Mortgage links its interest rate to the Euribor, which represents the average lending rate between eurozone banks. Avant adds a fixed margin based on the loan-to-value (LTV) ratio:
– LTV above 80%: Margin of 1.10 percentage points.
– LTV below 80%: Margin of 0.90 percentage points.
With Euribor currently at 2.41%, rates range from 3.31% to 3.51%, adjusted annually to provide borrowers with clarity on repayments for the following year.
Unlike traditional tracker mortgages tied to European Central Bank (ECB) rates, Avant’s product tracks Euribor and adjusts rates annually rather than immediately following ECB changes. This offers borrowers flexibility akin to short-term fixed rates.
Benefits for Borrowers include no penalties for early repayments or overpaying, competitive rates compared to standard variable mortgages and transparency through publicly available Euribor benchmarks.
The Flex Mortgage will be open to new and existing customers starting April 2025 and the move signals increased competition in Ireland’s mortgage market, providing borrowers with more flexible and transparent options at a time when interest rates are evolving. As a broker for Avant we are happy to discuss this option when it is on the market and indeed all market rates with you, make an appointment today! Click Here!