Avant Money, the financial lender, has decided to increase the interest rates on its fixed-rate mortgages. This change applies to the three, four, and five-year fixed rates, as well as the variable rate. However, the innovative One Mortgage option, which allows borrowers to lock in their rate for the duration of their mortgage, remains unaffected. In fact, the rates for One Mortgage will continue to be as low as 3.95%, making it one of the most affordable options in the market.
The new rates will take effect from Monday, but those who have already applied for a mortgage have until September 29 to secure their loan at the pre-increase rates. Specifically, the five-year fixed rate for borrowers with an 80% loan to value will increase to 4.10%, while the three-year rate for borrowers with a 90% loan to value will be set at 4.05%.
Brian Lande, Head of Mortgages at Avant Money, expressed that the One Mortgage product now offers a competitive alternative to shorter fixed rates available in the market. This option provides customers with the certainty of consistent mortgage repayments, as their monthly payments will never change.
Existing Avant Money customers will not experience any immediate changes due to this interest rate increase. In May, Avant Money was the only lender to reduce rates on its One Mortgage product, amid a trend of rising rates triggered by the European Central Bank (ECB) last summer.
Across all lenders, the interest rate for new mortgages has reached its highest level in years and is expected to continue rising in the coming months. According to recent figures from the Central Bank, the average interest rate on new mortgages in Ireland rose from 3.84% in May to 4.04%. This 0.20 percentage point increase in June was the second-largest across the Eurozone. While mortgage rates have slightly declined in other countries, they continue to rise in Ireland.
Despite these increases, mortgage rates in Ireland remain relatively competitive compared to other Eurozone countries. In an attempt to attract first-time buyers, mainstream lenders have not passed on all of the nine ECB rate hikes from last year.
Unfortunately, those trapped with vulture funds have experienced significant rate increases. Some borrowers are now being charged rates as high as 10%, with the average being 8%. The Central Bank has identified approximately 32,000 borrowers who have encountered financial difficulties as a result of having their loans sold to vulture funds.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
