Which is the best Avant mortgage to take out?

[Brendan Burgess]

Avant gives you a choice of an ordinary mortgage or an Avant One mortgage.

With an ordinary Avant mortgage, you should take out as long a term as possible - say 30 years - and then choose your fixed rate period.

Let's take an 80% LTV mortgage to illustrate this.

Take it out for 30 years, but fix for a shorter period
Fix for 7 years: 2.2%
Fix for 10 years: 2.35%


The Avant One Mortgage is unusual in that you fix for the full term of the mortgage.
So if you take out a 30 year mortgage, you fix for 30 years.
You can't take out a 30 year mortgage and fix for 15 years.

One Mortgage - Fix for the term of the mortgage
15 years: 2.5%
20 years: 2.6%
25 years: 2.9%
30 years: 3.1%


So, with the ordinary mortgage, you should take out a mortgage for as long a term as possible.

With the Avant One, you should take out as short a term as you can afford.

 

[Brendan Burgess]

Does the LTV matter?

Let's say I am 90% LTV

Fix for 3 years at 2.35% and then when I have the LTV lower fix at 1.95%.

If I take out a One Mortgage at 30 years at 90% , it will be 3.1%. I presume I can't get the lower rate of 2.85% for 30 years if my LTV falls.