Avant is raising its rates from Monday (Aug 2022)

Brendan Burgess

Brendan Burgess

Founder
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Implementation Details

  • For existing Avant Money mortgage customers, no action is required. Follow-on variable rates are subject to change as per our Variable Rate Policy Statement. Our follow-on variable rate will change to 2.45% for LTVs up to 70% and to 2.70% for LTVs above 70%.
  • Our current fixed rates will continue to be available to customers with a Letter of Offer dated before 15th August 2022 and who complete full mortgage drawdown by close of business on Friday 9th September. To guarantee drawdown in this period, all legal packs and all associated documents must be submitted to Avant Money and confirmed as correct by Friday 2nd September.
  • Our new rates will be applied to applications received and to offers issued from Monday 15th August.
 
Avant Money Announcement
We are increasing our mortgage interest rates with effect from Monday 15th August 2022. Market funding costs have risen sharply this year and with one ECB rate change already announced, more are anticipated.

Our interest rates will increase by between 0.30% to 1.00% depending on the product. Please see the rate table below for the full range of changes.

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Updated Best Buys for <90% mortgage

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Note 1 : Finance Ireland's 10-year and longer fixed rates automatically fall as you move into lower LTV brackets over time
  • See the section "How we decide rate reductions" on this page.
  • The rates they use are today's rates, not any future rates, which might be higher
For example, if you buy a house for €400k and borrow €340k, then you will have an 85% LTV and you can fix for 10 years at 3.35%. But if a combination of capital repayments and house price increases, brings your LTV down to 60%, your rate will fall to 2.9%

Note 2: Avant One Mortgage 11 to 30 years
Avant One is an unusual mortgage. You can’t take out a 30-year mortgage and fix for the first 15 years. The 15-year rate is the rate for a 15-year mortgage.
  • Overpay 10% of the balance each year without penalty
  • Maximum early redemption fee 2% of amount paid off in Years 1-10, 1.5% after that.
Early redemption fee may be waived if trading up and taking out a new mortgage with Avant
 
Quite underhanded of them for the dates, they are excutiatingly slow at approving applciations.

We applied nearly three months ago and valuation only happening on Monday.
 
Hi Alkers

I suspect that they have held off increasing rates because of the backlog.

Most of the complaints on this thread seem to be from applications that started a few months old.

Avant Mortgage - new mortgage time line experience?

We got details in the post yesterday and was in with solicitor to sign off. Required LPT tax confirmation paid and life assurance details before sending to Avant Was told by solicitor Avant slow issuing funds. What is users wait time before funds received
www.askaboutmoney.com

I wonder if they have improved. If there are people getting approval promptly, they are probably not coming on here to say "Well done Avant!"

I have put in a call to a broker to see what his experience is.

Brendan
 
OK, I spoke to a broker who told me that they have improved a lot.

1) Approval in Principle takes about 7 working days
2) Getting the Loan offer after that takes a few days after the customer has submitted all their documentation.
It takes about 3 working days from the instruction of the valuer to getting the value up on the Avant system.
3) Drawdown is quick on their side. The main delays are on the buyer's solicitor's side.

Anyone who has a loan offer today should be able to draw it down by 9th September as long as they get all their documentation in by 2nd September.

Brendan
 
For people trying to make the deadline, some time consuming things I encountered near the end that might trip you up trying to close quickly

1. Solicitor getting deeds from existing bank. From AIB this took around 1 week for us.

2. Valuation can take a week to get the valuer to actually call to the house and then another few days to complete the paperwork.

3. House rebuild cost will be estimated with valuation, you may need to adjust your home insurance policy if it’s lower.

4. Any recent building work (extensions, attic conversion, etc.) needs a certificate of compliance or an opinion of compliance. Your solicitor will force this point. If an opinion of compliance is required it’s probably going to take up to 2 weeks, a week to get someone onsite and a few days for paperwork. In hindsight I would of said nothing, they were never going to check and it wasn’t mentioned in the valuation.

5. Mortgage protection insurance, must match (within €600) or exceed the outstanding mortgage. Due to a previous mortgage break ours was slightly off and needed to be corrected. Either with a new insurance policy or make up the difference with cash

There’ll also be some pressure to push the solicitor along with the deeds recall, organising the appointment for signing paperwork that suits both and then getting them to finalise the whole lot.
 
For the previous deadline of drawdown by 15th July, the signed loan pack & all documentation had to be with Avant by Fri 8th July. I had all documents with Avant on the 8th. Due to some small additional queries/back & forth with solicitor the application only went to pre draw down approval late on the 15th July and then drawdown actually occurred on Tues 19th July. Technically 2 days late but Avant still honoured the 1.95% rate though.
 
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