Avant Money launches a new mortgage today from < 2%

Gordon Gekko said:
Many thanks, but I’m struggling to see how when it’s institutional deposit rate for 5 years minus institutional deposit rate for 4 years, both of which are negative, and with the 5 year number less negative than the 4 year number, how that can be positive.
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You are looking at two different points in time. And market rates change all the time.

X=interbank rate for the given term when you fixed
Y=interbank rate for remainder of term today.

^^^^^^^^^^I have no professional expertise and anyone more knowledgeable please correct me^^^^^
 
NoRegretsCoyote said:
You are looking at two different points in time. And market rates change all the time.

X=interbank rate for the given term when you fixed
Y=interbank rate for remainder of term today.

^^^^^^^^^^I have no professional expertise and anyone more knowledgeable please correct me^^^^^
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That's pretty much it with a worked example above by me
 
pcowan said:
Thanks everyone - new here but found this site really useful before I called my broker today. Here are my details:

260,000 left on the mortgage for 25 more years at 80% LTV. House is in Kildare town. Paying 1206 per month to BOI at rate of 2.8% - fixed rate about to finish. Broker told me it was a no brainer to switch. No fee to broker and about 1000 legal cost. But then I get a Avant money 3 or 5 year fixed at 2.20% or a 7 year at 2.40%. My repayments drop to 1128 per month (-78 every month) or a saving of 45,000 over the life of my mortgage.

Broker also says Avant Money will do Kildare no problem. And says they have a 1% overpayment amount - but it is on the original mortgage - so for me that is up to 2,600 every year without a penalty. Should be loads for me.

What do you think - seems a good deal to me. Spend 1000 now and save 45,000 over time. The 1000 is repaid in the savings of the first year. Broker says it takes about 2 or 3 months and they do the work for me.

Any advice before I press the yes button on this? I am thinking the 5 year rate is best for me.
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Hi pcowan, would you mind sharing which broker you deal with?
thanks
 
Some interesting and informative threads there. I have an AIB Variable mortgage (D13 Apt nr Clongriffin Dart) at 3.15 % over 30 years, 14 years into that period now and would reasonably guess have a LTV just over 50%. Am wondering if the Avant move is the start of a 'mortgage rate' war and will lenders like AIB respond in kind and will that be exacerbated by Covid, ECB decisions , particularly from the new year on. I probably just want a steer as regards the wisdom of possibly switching now or holding off for 6 months to see what happens....
 
Well if you are at 50% LTV, you should be looking at getting a lower variable rate with AIB

The Less than 50% rate is 2.75%

Brendan
 
Marco 1972 said:
I have an AIB Variable mortgage (D13 Apt nr Clongriffin Dart) at 3.15 % over 30 years, 14 years into that period now and would reasonably guess have a LTV just over 50%.
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Not likely. Your apartment probably isn't worth what you've paid for it in 2006 and without a tracker you'll have paid off only about 40% of the balance by now.
 
Marco 1972 said:
Some interesting and informative threads there. I have an AIB Variable mortgage (D13 Apt nr Clongriffin Dart) at 3.15 % over 30 years, 14 years into that period now and would reasonably guess have a LTV just over 50%. Am wondering if the Avant move is the start of a 'mortgage rate' war and will lenders like AIB respond in kind and will that be exacerbated by Covid, ECB decisions , particularly from the new year on. I probably just want a steer as regards the wisdom of possibly switching now or holding off for 6 months to see what happens....
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AIB have already responded, but only on fixed rates. Nobody really seems to be competing on variables anymore.
 
Michael Dowling of Dowling Financial told me that he does not charge a fee.

There are some other brokers not on the list who have arrangements with the named broker. They might absorb the fee.

Brendan
 
Brendan Burgess said:
Well if you are at 50% LTV, you should be looking at getting a lower variable rate with AIB

The Less than 50% rate is 2.75%

Brendan
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My experience with AIB was that they wouldn't entertain a switch to a lower LTV if your first rate with them was also based on LTV. My first rate was <80% i think so they wouldn't let me switch to a <50%
 
dereko1969 said:
My experience with AIB was that they wouldn't entertain a switch to a lower LTV if your first rate with them was also based on LTV. My first rate was <80% i think so they wouldn't let me switch to a <50%
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That was their policy previously I think, but no longer is the case as far as I know. Worth checking it out with them again.
 
dereko1969 said:
My experience with AIB was that they wouldn't entertain a switch to a lower LTV if your first rate with them was also based on LTV. My first rate was <80% i think so they wouldn't let me switch to a <50%
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My mortgage is with Aib, they allowed me to switch to a better rate once the ltv had improved. Website stated i needed a new valuation completed but they didn't request one
 
dereko1969 said:
My experience with AIB was that they wouldn't entertain a switch to a lower LTV if your first rate with them was also based on LTV. My first rate was <80% i think so they wouldn't let me switch to a <50%
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They officially changed their policy 18 months ago. An existing customer can avail of a lower LTV mortgage and it's now on their website.

aib.ie

Change mortgage details

aib.ie aib.ie


Change the Loan to Value (LTV) on my current Mortgage
You may have the option to move to a lower LTV band as the loan to value on your current PDH mortgage reduces.
Before you can move to a lower LTV band, you may need to provide us with an updated full valuation report. There are a couple of points you should be aware of:
  • you are responsible for arranging the valuation report and for the cost.
  • the valuation report must be dated within the past 6 months.
  • the valuation report must be completed by an approved valuer from the AIB Residential Mortgage Valuer's Panel.
 
I just got my place valued to try and avail of the 2.35% AIB rate for the <50% LTV. Unfortunately my LTV is coming in at 52%. Should I just move my mortgage to Avant and avail of their <60% rate or try and negotiate with AIB? Would they even be open to negotiation?
 
Padjo2007 said:
I just got my place valued to try and avail of the 2.35% AIB rate for the <50% LTV. Unfortunately my LTV is coming in at 52%. Should I just move my mortgage to Avant and avail of their <60% rate or try and negotiate with AIB? Would they even be open to negotiation?
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They won't negotiate. Could you slip the valuer a few quid?
 
How much is your mortgage balance?

Can you pay a lump sum off the mortgage to reduce it to 50%

But in any event, would it not be worth switching to Avant to pay 1.95% instead of 2.35%?

Brendan
 
Brendan Burgess said:
Can you pay a lump sum off the mortgage to reduce it to 50
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My mortgage balance is €194,110 so I would need to pay a lump sum of about €10,000 to get it down to <50%. I think switching to Avant might be my best option alright as the 10k would put a significant dent in my savings.
 
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