It isn’t really.
If you’re going to lend at 1.95% into a market where it’s nigh on impossible to enforce security, it’s logical to try and manage other risks such as the size and liquidity of the relevant housing market.
People from the back of beyond never seem to want to accept this, but houses outside of the main urban centres just aren’t as desirable from a lending perspective; typically harder to value and typically harder to sell.
That policy completely ignores this fact and just takes the easy option but by doing so they are losing out on some very reliable customers
That answer though is one size fits all because there are areas outside of Dublin and the main cities which are pockets of houses which are easy to value because they always maintain their value and are easy to sell (Long-standing sought after/desirable areas). That policy completely ignores this fact and just takes the easy option but by doing so they are losing out on some very reliable customers
There are lots of people living outside the bigger urban areas that are low risk customers. Avant should look at each case individually and assess the level of risk that's involved. Of course they can lend to whoever they want, but they are certainly limiting their market. An individuals circumstances and situation is more importance than the exact location of their property. That should not be the one and only criteria they take into account. As previously mentioned one size does not fit all.
Spending a lot of time and effort to do a detailed, individual risk assessment for properties or potential customers that are outside your defined, low risk, profiles is exactly what you don’t want todo if your target is to provide low interest rates.There are lots of people living outside the bigger urban areas that are low risk customers. Avant should look at each case individually and assess the level of risk that's involved. Of course they can lend to whoever they want, but they are certainly limiting their market. An individuals circumstances and situation is more importance than the exact location of their property. That should not be the one and only criteria they take into account. As previously mentioned one size does not fit all.
For others thinking of applying, before you go to all the hassle, maybe get the broker to confirm you're not going to be wasting your time.
MMPI from Donnybrook don't charge any fees.Many of the brokers charge an application fee.
Prior to draw down, the Borrowers must each provide a payslip confirming no negative changes to their employment since the original application was assessed. This payslip must be dated within 4 weeks of the date of draw down.
Not sure if this is standard in the current context (or outside of it), but the Avant loan offer form has the following as a "Special Condition":
Compensation shall be calculated in accordance with the following formula:
C = (A x (F1 -F2) X D)/365
A = the amount repaid early (or the amount which is changed from the fixed rate to a new rate) averaged from the date of early repayment (or rate of change) to the end of the fixed rate period to allow for scheduled repayments (if there any) and interest charges.
F1 = the annual percentage interest rate, which was the cost to Avant Money of funding, at the time of origination, for an amount equal to A for the period starting at the date of early repayment to end of the fixed period.
F2 = the annual percentage interest rate which is the cost to Avant Money of funding an amount equal to A for the period equal to D at the time of the early repayment.
D= the number of days from the date of early repayment (or rate change) to the end of the fixed period.
If C is zero or a negative number, no amount is to be paid to Avant Money.
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