Bank loan

Pressure mounts on big banks as Avant cuts lending rates

The pressure is mounting on the big banks, with a new round of mortgage rate cuts introduced by the provider of the cheapest mortgage loans on the market.

Before Money will again lower 15 of its fixed rates, the Independent Irish has learned.

Leitrim-headquartered lender is expanding coverage to make mortgages available nationwide.

When it was first launched here, it limited its operations to cities and large urban areas.

Meanwhile, from Monday, Finance Ireland cuts its fixed rates to 10, 15 and 20 years and introduces a new 25-year fixed rate. Most rates fall by 0.10 percentage points.

Finance Ireland is also introducing a limited offer of € 1,500 for professional fees related to switching and adopting a long-term fixed rate.

Avant Money, which belongs to the Spanish banking group Bankinter, is reducing its fixed rates to 0.30%, which will put pressure on its competitors.

The lender, which offers its products through brokers, seriously disrupted the market when it was the first to offer mortgages below 2% when it moved to Ireland last year.

He introduced the lowest rate of 1.95pc for those with mortgages of 60pc or less of the value of their home.

Avant Money is not reducing that rate this time, but is reducing the cost of 15 of its different fixed rates and two of its variable tracking rates, which borrowers return when they end their fixed rate term.

The reductions will translate into thousands of euros in savings for first-time buyers and money changers who take out an Avant Money mortgage.

The new rates apply to a variety of loan values.

Until now, its best rates have been reserved for first-time buyers with larger deposits and for movers and money changers who have built up a large amount of equity in their homes.

The new rates should be particularly attractive for first-time buyers. This is because new buyers generally need a higher mortgage.

Avant Money, like most lenders, offers better rates to those with lower loan-to-value ratios.

Beginning next week, Avant Money will offer a three-year fixed rate of 2.20pc to 90pc of loan against value.

That’s 0.15 percentage point lower than the next best deal on the market.

Switchers needing a mortgage of € 250,000 over 20 years, with a loan of 70% on value, could save up to € 56,000 over the term of their mortgage with the new fixed rate of less than three years.

This is based on a Avant Money rate of 2.05 pc compared to the Bank of Ireland three-year rate of 3 pc.

Avant Money said the rate cuts would provide an additional incentive to change for KBC and Ulster Bank customers, who may be considering their mortgage options in the coming months.

With the departure of two banks imminent, Avant Money aims to become the fourth largest mortgage provider here after AIB, Bank of Ireland and Permanent TSB.

Despite non-bank lenders Before, ICS Mortgages and Finance Ireland recently cut rates and offered innovations such as 30-year maturities, AIB and Bank of Ireland had little reaction.

Brian Lande, head of mortgages at Avant Money, said the lender’s products are now available to customers across Ireland as it expands its range of locations. and appointed new brokers.

“The advice and guidance provided by our panel of mortgage brokers is particularly valuable for consumers who want to compare their full range of options in the market,” he said.