Avant Money to raise some mortgage rates

Mortgage provider Avant Money will increase some of its interest rates for new customers as a result of rising financing costs.

The lender’s five-year fixed rates will increase by 20 basis points (bps), while its seven- and 10-year fixed rates will increase by 30 bps.

It will also increase rates on its 15- and 20-year ‘One Mortgage’ product, which guarantees the same rate for the life of the loan.

The move comes ahead of an expected interest rate hike by the European Central Bank, possibly as soon as next month.

The development is likely to further focus the minds of potential and existing borrowers on the question of whether they should lock in their mortgage rate now.

Along with the increases, Avant Money will lower its rates on its longer-term 25-year and 30-year “One Mortgage” offerings.

While your three-year and four-year fixed rates will remain unchanged.

“We are seeing considerable upward pressure on financing costs and recognize that the option to settle for longer may be attractive to many of its customers,” the company said in a statement.

“One Mortgage’s price reductions are intended to make this option an even more compelling choice for customers.”

The company said that existing customers will not see any change in rates, while those in the process of applying will have until July 15 to complete the withdrawal at the old rates.

New customers who apply after May 13 will only be offered the new rates.

“If people were putting off repair or replacement until now, they have no more excuses,” said Trevor Grant, president of the Irish Mortgage Advisers Association.

“This is likely to be the first in a series of increases.”

He added that rates have been at historically low levels for some time and mortgage holders should consider their options to insure and protect against future rate increases that are unavoidable.

“Even those with existing fixed agreements should ask their lender if there are breakage fees to settle with the same lender or elsewhere,” he added.

Avant is not the first mortgage provider to raise its rates.

In March, ICS increased its fixed rates for new clients with increases of between 20-45bps.