"Avant will allow borrower to overpay 10% of their balance"

[Brendan Burgess]

Reported in today's Irish Times

Pros and cons of locking into a 20-year mortgage

If a longer term appeals, there are a number of things to consider before taking the plunge

www.irishtimes.com

A spokeswoman for Avant Money says it will allow borrowers to overpay up to 10 per cent of their mortgage balance per calendar year “very shortly”.

 

[Steven Barrett]

10% overpayment is standard with fixed term mortgages. The big question is breakage fees. In other countries where long fixed term rates are common, the breakage fee isn't prohibitive. I wouldn't advise anyone to lock in a 20 year rate unless they had a clear understanding of how much it would cost them to get out of the fixed term. A lot happens in 20 years...


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[Brendan Burgess]

Hi Steven

I quoted exactly what she said in the article, but it should be clarified.

Anyone can repay a fixed rate mortgage in full at any time. There is no 10% limit.

However, what Avant allows is that the borrower can repay 10% and not face a break fee.

I tend to agree on the 20 years. 10 years seems long enough for a balance between the certainty of a fixed rate and the flexibility to repay your mortgage without a huge penalty.

Brendan

 

[nest egg]

Hi Steven

I quoted exactly what she said in the article, but it should be clarified.

Anyone can repay a fixed rate mortgage in full at any time. There is no 10% limit.

However, what Avant allows is that the borrower can repay 10% and not face a break fee.

I tend to agree on the 20 years. 10 years seems long enough for a balance between the certainty of a fixed rate and the flexibility to repay your mortgage without a huge penalty.

Brendan

Agree but the impression it gives is that are going to offer similar T&C to Finance Ireland. If Avant do offer the ability to overpay 10% without penalty, it would be a very tempting proposition.