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

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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!

 

Huge Savings for Mortgage Switchers in 2024 – up to €7,000 can be saved by switching your lender!

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The value of how much can be saved from mortgage switching increased dramatically last year. The rise in switching follows multiple rate cuts over the past six months, with some lenders reducing their rates by as much as 1.5 percentage points. This resulted in many savvy mortgage holders shaving up to €7,000 a year from their biggest outgoing by moving to another lender. This represented a 45pc rise in the value of switcher financing last year, according to Doddl.ie Mortgage Switching Index. Talking to a trusted broker is a significant part of the process.

Switching expert and chief executive of mortgage broker Doddl.ie Martina Hennessy said large numbers of those now moving their mortgage had been on variable rates.
“Many mortgage holders who came off fixed rates had been content to remain in variable products waiting for further cuts,” she said.
“They now see the value in locking in to lower rates and can find them with an alternate lender to their current mortgage provider.”
“The vast majority of those who complete the mortgage-switching process are now turning to brokers for market-based advice – trying to ensure they get the best rate on their largest financial commitment.”
The gap between the highest and lowest rate on the market is now double, with the lowest rate currently standing at 3pc and the highest rate at 6.15pc.
“Switching has become a core product for lenders and is now no longer the daunting task it once was – seven lenders will offer cash-back switcher packages to cover legal costs associated with switching,” she said.
“The process is also much quicker than ever before.”
Ms Hennessy said that when the switcher index was introduced five years ago the average switching time was eight weeks.
“However, this has changed completely, with one of our recent switches being completed from application to draw down in 10 working days,” Ms Hennessy said.
To find out your best options for switching, talk to us to find out more on 071 9194194 or email mortgages@obg.ie

ECB cuts interest rates again giving mortgage holders another boost!

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The European Central Bank cut interest rates today and muted the possibility of further policy easing as concerns over lacklustre economic growth supersede worries about persistent inflation. It was the fifth ECB rate cut since June and markets expect two or three more this year. ECB rate cuts combined since July 2022 are now significant for borrowers.
This fifth 0.25% drop, would mean a typical tracker mortgage holder on 0.5% above the ECB rate with an outstanding mortgage of €180,000 will see a total reduction of €145 per month on repayments arising from the reductions, including the special one-off reduction of 0.35% in September last.
Beyond tracker mortgage holders, those on variable rates and those coming off fixed rates are dependent upon what their lenders will do. However, it is expected with increasing competition and the ECB’s approach that lenders will review their fixed and variable rates.
About eight in every ten new mortgages taken out in recent years were for fixed terms, short fixed terms, typically three years. About 80,000 of these are exiting those rates this year.
Irish lenders have the capacity to offer better long-term fixed interest rates, which were only relatively new in the market when they were pulled as the ECB began raising rates from mid-2022.

To discuss your mortgage with us, call 071 9194194 or email mortgages@obg.ie

Mortgage rates reach lowest level since May 2023 as lenders make cuts

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The average interest rate on new Irish mortgages fell to 3.97 per cent in November, the lowest since May 2023. The latest figures released by the Central Bank came as PTSB announced it would cut its fixed mortgage rates.PTSB is introducing significant cuts of between 0.15 and 0.95 per cent across its range of fixed-rate products. It is likely that other lenders will now follow suit in the coming weeks.

Trevor Grant, chairperson of Irish Mortgage Advisors, said the fall in the average interest rate on new mortgages is a trend that should continue this year. “Markets are forecasting another four ECB [European Central Bank] cuts this year – with most of them expected in the first six months of 2025. This could see the average interest rate on new mortgages drop substantially in the coming months,” he said.

“In time, falling ECB rates should make their way to variable and fixed rate mortgage customers. The recent fixed rate mortgage cuts announced by a number of banks is evidence that this is already happening.
“Indeed, we could see multiple fixed and variable mortgage rate cuts this year. Homeowners and house hunters should get ready to make the most of these falling rates.”

To discuss your mortgage with us and find the best rate for you, call 071 9194194 or email mortgages@obg.ie

 

New Mortgage Lender – Nua Money

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A new lender has entered the Irish mortgage market! Nua Money, has secured a licence from the Central Bank is now providing an enhanced digital mortgage experience for consumers. Nua will focus on the owner-occupier market.

Nua boast a state-of-the-art digital mortgage platform that enhances customer service, guarantees transparency, and boosts operational efficiency. They are looking to transform the market by offering an easy and efficient process to mortgage approval. Their vision is to provide mortgage processes that are not only easier but also more accessible with a seamless experience that aligns with the needs of modern homeowners.

More information is available www.nuamoney.com

With interest rates now starting from 3.45%, talk to us to find out more on 071 9194194 or email mortgages@obg.ie

ECB cuts interest rates by 0.2% after Ten increases since 2022

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The European Central Bank has delivered a boost to mortgage holders with a cut in its key interest rate by 0.25 percentage points to 4.25pc. This welcome news was widely anticipated and there may be many further reductions in the coming months.

The current reduction, which will see rates falling from a 22-year high and will be a big boost to tracker mortgage holders. There are 180,000 customers with ­tracker mortgages who will see €13 shaved off their monthly repayments from next month as a result of the ECB reduction, meaning a saving of €156 a year based on a homeowner couple with 15 years left to pay and €100,000 outstanding. Tracker holders are also in line for another 0.35 percentage points reduction in September when the ECB makes a technical adjustment to its rates.

Variable and fixed rates may not come down immediately because recent cuts in fixed and variables by AIB, Haven, EBS, Bank of Ireland, PTSB and Avant Money had already factored in today’s rate reduction. Some lenders will also argue that they did not pass on all the ECB rate rises when pricing new fixed rates and on variable rates.

There are two further 0.25 point cuts anticipated at the ECB’s September and December meetings later this year but this is dependent on inflation coming down to the ECB’s target of 2pc.

To discuss your mortgage with us, call 071 9194194 or email mortgages@obg.ie

Avant Money Cuts Interest Rates while its Parent ‘Bankinter’ is set enter the Irish market

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Avant Money is the latest mortgage lender to announce plans to cut its mortgage interest rates, while it will introduce a further new incentive to support people who wish to move their mortgage to them.

The cuts see their four year fixed rate mortgage decrease to 3.6% for loan-to-values up to 80% and to 3.8% for loan-to-values of more than 80%. All other fixed rates will decrease to between 3.7% and 3.95% depending on the fixed rate term and loan-to-value with the new rates set to take effect from Friday May 3rd.

Avant Money have also announced a new mortgage switching incentive which offers 1% of the mortgage amount in cash – for example €4,000 on a €400,000 mortgage. Avant said there is no immediate change for its existing mortgage customers while any customers who have applied but not yet drawn down their mortgage will automatically get the benefit of the lower rates if they draw down from May 3rd.

The mortgage rate news was followed by the announcement that Spanish lender Bankinter intends to use its subsidiary Avant Money as an Irish banking branch.

It’s a good time for mortgage holders, with AIB(Haven) just after increasing the cash incentive for switchers by 50% from €2,000 to €3,000 while they have also cut their “green” mortgage rates for homes with a Building Energy Rating (BER) of B3 or better. Bank of Ireland recently introduced a range of discounts on its fixed rates for those with BER of any kind and Permanent TSB in March announced reductions in its four year fixed rate mortgage product.

With interest rates now starting from 3.45%, talk to us to find out more on 071 9194194 or email mortgages@obg.ie

New Bank of Ireland green mortgage offers varying discounts for all BER levels

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Bank of Ireland has announced that its fixed-rate green mortgage range will now offer customers discounts for homes with energy-efficiency ratings from A right down to G.

This new EcoSaver mortgage will replace the bank’s current green mortgage offering and is effective from April 18th. The move comes amid some criticism that under their green mortgage, many banks are increasingly only offering discounted rates to those whose homes have the highest BERs.

Customers with a home carrying a Building Energy Rating (BER) of A would qualify for a 0.35 percentage point discount against the prevailing fixed-rate price for their loan product. The discount narrows to 0.3 points for B-rated homes, right down to 0.05 points for G-rated properties.

The prevailing five-year fixed rates for owner-occupied properties with a loan of less than 80 per cent of a building’s value are, for example, 4.15 per cent for exiting customers and 4.75 per cent for new mortgage applicants.

Bank of Ireland aims to grow so-called sustainability-related lending on its balance sheet to €30 billion by the end of the decade, from €8 billion in 2022.

“Savings made through EcoSaver rates will contribute to the cost of retrofitting a home, so our customers can save money and improve their homes,” said Aine McCleary, chief customer officer with Bank of Ireland.

For further information on this , call us on 071 9194194 or email mortgages@obg.ie

 

Total of €14,109.80 raised for Sligo Cancer Support Centre

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The Sligo Christmas Splash Committee were delighted once again to be able to hold their annual fundraiser at Rosses point on Christmas Day 2023. There was a fantastic turn out for the event with huge numbers embracing the cold and making a splash for a great cause. A fantastic total of €14, 109.80 was raised for Sligo Cancer Support Centre from the event. Sligo Cancer Support Centre is a place of peace and hope where people with cancer and their families can access support, counselling, holistic therapies and healing workshops in a caring and tranquil environment in the North West of Ireland

The committee would like to acknowledge the generous support of all those who donated and attended the event. The committee are looking forward to Christmas Splash 2024 already!

First Time Buyer Mortgage Approvals hit Record High

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Mortgage approvals for first-time buyers have hit a record annualised high in February according to figures from the Banking and Payments Federation of Ireland (BPFI). The information shows that in the year to the end of last month, first time buyers were given approval for mortgages worth a total of almost €9 billion. This represents almost 60% of total mortgages approved in the period. Overall, there is a 6% increase in total approvals on February 2023 and a gain of almost 10% versus the previous month, January 2024.
“Our latest report shows that the mortgage market regained positive momentum in February with 6% year-on-year growth in mortgage approval volumes and 7% year-on-year growth in approval values,” said Brian Hayes, chief executive of BPFI.
“First-time buyers continued to drive the market, with 2,171 FTB mortgages approved in February valued at €640m, a jump of 14.7% and 19.8% year on year in volume and value terms and the highest February levels since the data series began in 2011,” he said.
Shane Breheny of Oates Breheny Group commented “the trend isn’t surprising as we see a lot of activity in this area currently. We have had an extremely busy start to the year with mortgage approvals, especially first-time buyers. We are finding that as a broker we are always able to build a suitable mortgage plan to gain prompt approval for our clients.”
The report also shows that re-mortgaging or switching activity rose by 0.5% in volume terms year-on-year and fell by 10.7% in value in the same period.
To discuss your mortgage situation or application, contact us on 071 9194194 or email us at mortgages@obg.ie