Avant Money is shaking up the Irish mortgage market with a major announcement. The lender is slashing its fixed mortgage rates by up to 0.4 percentage points and offering a generous cashback incentive of 1% on all new mortgages. This move comes in response to recent cuts by AIB, Bank of Ireland, and PTSB, intensifying the competition in the market.
Avant Money Cuts Rates and Offers Cashback
Starting next Thursday, Avant Money’s “One Mortgage,” with a fixed interest rate for the life of the mortgage, will drop to 3.4% from 3.8%. The lender is also reducing its three-year rate to 3.6% for those borrowing 80% or less of the home’s value, down from 3.7%. Its popular four-year fixed rate will fall to 3.4% from 3.6%.
Avant Money will be rolling out a cash-back incentive for all new mortgages beginning in January 2025. On a typical €300,000 mortgage, this means customers could receive €3,000 in cashback. This move signals a change in strategy for the lender, which previously reserved cash-back offers for mortgage switchers.
Why the Movement in Rates?
These aggressive rate cuts are driven by several factors. The European Central Bank has lowered interest rates three times this year, with a fourth cut expected in December, impacting mortgage rates across Ireland.
Competition among lenders is fierce, with AIB, Bank of Ireland, and PTSB all making significant rate adjustments earlier this year.
Brian Lande, Avant Money’s head of mortgages, explained: “As market rates fall, we are pleased to pass the benefit directly to our customers through reduced interest rates and a new cash-back incentive. The cash-back incentive is designed to offset the costs associated with moving home or switching mortgage.”
Mortgage broker Michael Dowling believes the new rates and cashback will make Avant Money more competitive, saying, “The introduction of the 1pc cashback will make Avant Money more competitive in terms of its overall mortgage offering and should improve its share of the mortgage market.”
Green Mortgages Remain Competitive
While seven green mortgage rates now charge low-cost mortgages to homeowners, customers with highly energy-efficient homes still might have a compelling case to check if they can save even more by switching mortgage providers.
Upon closer inspection, they may be able to improve on their existing deals with the significant cashback incentives being introduced.
The competition among Irish banks and lenders is continuing
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