Spain Avant extends Irish reach for cheaper mortgages
Avant Money, the mortgage provider owned by Spanish banking group Bankinter, is expanding its low-cost mortgage offering to a range of new locations across the state. The move could increase pressure on other lenders to cut rates, with data showing Avant now accounts for nearly one in five of all mortgage changes in the Republic.
Avant launched its Irish mortgage product last September, significantly undercutting existing players with its lowest rate of 1.95% available to those with mortgages worth 60% or less of the purchase price of their home. However, it initially focused on the five largest cities and their surrounding suburbs (Dublin, Cork, Galway, Limerick and Waterford). Now it is expanding its reach and, starting this month, will begin lending to owners based in Athlone, Carlow, Dundalk, Kilkenny, Portlaoise and Wexford.
According to the lender, the move will allow it to cover 71% of state properties. It will extend this measure further in due course.
Brian Lande, Mortgage Manager for Avant Money, said: “We are delighted to continue our growth in Ireland and to offer low prices to Irish consumers who have been charged the highest mortgage rates in Europe for far too. long time.
Avant has also dramatically increased the number of brokers it works with, from 19 when it was initially launched to 32. It plans to add to this panel in the coming months.
Unlike other lenders, who often offer cash back on the value of a mortgage or a lump sum to help cover change costs, Avant Money focuses on lower rates, a strategy that seems to work. . According to data from the Banking and Payments Federation of Ireland (BPFI), Avant Money approved nearly one in five mortgages in February.
With Ulster Bank exiting the Irish market, activity is expected to increase in the conversion market. BPFI’s latest figures for March show the level of mortgage change has risen to 15 percent of all mortgage approvals.
Permanent TSB has recently adapted its strategy in this regard, introducing a new low rate of 2.25 percent for new clients with loan values below 80 percent. It is aimed at customers who want a lower rate rather than a refund offer.
The repayment offers have drawn criticism from the Competition and Consumer Protection Commission for their low added value to borrowers, as the rates associated with these products mean that homeowners end up paying more for their mortgage. .