Avant overpayment policy

[Wiresandmore]

Hi

With the recent change, Avant let you overpay up to 10% without charge each year. But does anyone know how they define year? Is it the 12-month period from the date you take out the mortgage? Or calendar year? With UB, it’s calendar year so I wonder if Avant is the same. I would try to switch prior to Dec if it was but will wait until early 2022 if not.

I can’t see this on the FAQ on their site, so any advice appreciated

 

[RedOnion]

Hi, is the following clear?

1. The Overpayment Allowance
1.1 If your loan is on a fixed rate of interest, you will not incur an early
redemption fee if you partially repay your loan early provided that:
(i) you only make up to two payment(s) in any calendar year over and
above the scheduled monthly payment instalments; and
(ii) the total of these overpayment(s) does not exceed a maximum of 10%
of the loan balance as at:
• 1st of January of the calendar year in which the early repayment(s)
are made, or,
• the date of drawdown if the early repayment(s) are made in the first
calendar year of the loan (the “Overpayment Allowance”).

 

[Brendan Burgess]

So if you draw down today 25th Sept, you can overpay by 10% of the amount drawn down before the 31 December 2021. And you can overpay another 10% in 2022.

So I can't see why you would delay switching to early January?

 

[Wiresandmore]

Great, this is what I needed, thanks

 

[nest egg]

As many banks cap the transfer at 5k per transaction, does that have the effect of limiting the amount you can overpay an Avant mortgage, given they only permit 2 two payments without penalty per annum?

 

[Ndiddy]

Does anyone know how the payments can be made? Is it a bank transfer?

 

[Itchy]

Bank transfer. If you contact them, they will provide them to you.

 

[TruffleShuffle]

I overpaid recently. The account to transfer money to is named in your welcome pack. You have to email them too and inform them you've overpaid and how you want the payment to work. If you ring them, they will give you the email address. Very straightforward process.

 

[Paul F]

You have to email them too and inform them you've overpaid and how you want the payment to work.

Do you mean that you have the choice of shortening the term or reducing the monthly repayment?

Of course the advice here is that it is almost always better to reduce the monthly payment and not the term.

 

[iamaspinner]

I made an overpayment a few months ago. This is the email address I was given:

customerservices@avantmortgages.ie

 

[TruffleShuffle]

Do you mean that you have the choice of shortening the term or reducing the monthly repayment?

Of course the advice here is that it is almost always better to reduce the monthly payment and not the term.

Yes that's what I was told. I suppose you have to choose whatever suits you personally. I reduced the term as I have a short term left anyway and I'd rather be mortgage free sooner rather than later!