Term | Years | APRC | Fixed rate | Follow-on variable rate | Cost/1000 |
3 year fixed | 30 | 2.23% | 2.15% | 2.2% | €3.77 |
4 year fixed | 30 | 2.23% | 2.15% | 2.2% | €3.77 |
5 year fixed | 30 | 2.22% | 2.15% | 2.2% | €3.77 |
7 year fixed | 30 | 2.21% | 2.15% | 2.2% | €3.77 |
Not sure what catch you're looking for. Avant can afford to undercut existing lenders across various fixed rates and still make money. I haven't checked the yield curve in a while but assuming it's upward slopping they are making slightly less money on the longer term fixes than the shorter term.
What fixed term you should go for is really down to you and your financial position. There's usually a trade off between the certainty that a fixed rate mortgage provides versus the flexibility of a variable rat. However, Avant do offer a lot of flexibility. Some general points to consider:
The greater the percentage of your income going on your mortgage the more sensitive you are to interest rate movements. In that case you'll probably benefit from the security of a longer fix.
Avant allow you to overpay by 10% of the balance per annum so that should allow for an element of flexibility.
If you're in a position to clear your mortgage balance before the end of the fixed rate period your break fee will be capped at 2%.
Without knowing your financial position is hard to be definitive. However, I'd be looking at the 7 years option and would need good reason to look at anything shorter given their flexibility and low rates across the board.
I'm looking at switching to an Avant 5 or 7 year mortgage myself. However, we would likely look at upsizing or house in 4-7 years. If, in the likely event ECB and interbank interest rates rise in that time, am I correct in saying we would likely have a very low or zero break fee if we fixed for 7 years? If so, I think a 7 year fixed rate is the one we'll go for as I see no drawbacks unless interest rates happen to fall which I think is unlikely.
That's what I'm doing. Any saving you are missing out on in the event that interest rates do in fact small is relatively minor whereas the potential for rates to increase is very significant.I'm looking at switching to an Avant 5 or 7 year mortgage myself. However, we would likely look at upsizing or house in 4-7 years. If, in the likely event ECB and interbank interest rates rise in that time, am I correct in saying we would likely have a very low or zero break fee if we fixed for 7 years? If so, I think a 7 year fixed rate is the one we'll go for as I see no drawbacks unless interest rates happen to fall which I think is unlikely.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?