Avant Money - new entrant

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Here are their fixed rates in Spain, before discounts, and after all discounts:

www.bankinter.com

Fixed Interest Rate Mortgage | Bankinter

Bankinter
www.bankinter.com www.bankinter.com

Up to 10 yrs = 2.80% ----- 1.50%

Up to 15 yrs = 2.90% ----- 1.60%

Up to 20 yrs = 2.99% ----- 1.69%

These are not APRs.

Taking their 10 yr rate, 2.8% is good, but won't shake up the market that much, as 2.2%-2.6% fixed is available here for shorter terms.

Now, if they offer discounts here for bundling other products, and go as low as 1.5%, well that would be a massive change.


However, surely rates must be higher here than Spain, as banks must hold more capital against RWA here?

See here:

 
Below is an example from BBVA.

Interest rate example over 15 years | BBVA

www.bbva.es www.bbva.es

Similar pricing structure to Bankinter - the more you purchase from the bank the cheaper your rate. Irish banks do this to varying degrees already. I.e., Cheaper rates for current account holders. Mortgage protection and house insurance are often offered as a package here. However, compared to Spain it appears to be all profit for banks here (you pay the same mortgage rate and probably over the odds for protection and insurance).

For Avantmoney to offer a similar discounts as in Spain they will look to make money off you in other ways. What extra services are Avant money planning on launching?

For Bankinter to divert funds from Spain and want to lend here they most see some marginal gains compared to their existing Spanish business. I doubt they're looking to increase competition more take advantage of the lack of it in Ireland. They'll shake up the market as much as as ICS/Dilosk and Finance Ireland have. To go to all that trouble and expense they're not going to offer Spanish rates.
 
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