Long-term Fixed Rates: Is it a Mortgage Rates Revolution, or About Time!

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Great news for the Irish mortgage market this week! The competition is looking to intensify with the launch of Avant Money’s ‘One Mortgage’, offering a suite of long-term fixed rates, including the first ever 30-year fixed rate mortgage in the Irish market.

The “One Mortgage” products will enable borrowers to fix for the entire term of their mortgage, with rates for the 30-year term starting at 2.85% for a 60% Loan to Value (LTV) ratio.

The move comes shortly after Finance Ireland announced 20-year fixed rate home loans. Avant Money is upping the ante, enabling borrowers with a long-term perspective on their mortgage to lock into this historically low rate for 15, 20, 25 or 30 years.

What does this mean for borrowers?

It means whatever ups and downs life brings you, the one thing you can depend on staying the same is your mortgage payments. However, by making allowed overpayments you could reduce your mortgage term further.

All you need to decide from the onset is how long you want to fix your mortgage from 15 to 30 years. It is important to choose wisely, and a good broker helps with these decisions.

Long term fixed rates may not be for everyone. However, there are some great rates available now, with short term fixed rates from 1.95%.

Loan to Value (%) 10 Year Fixed 15 Year Fixed 20 Year Fixed 25 Year Fixed 30 Year Fixed
FINANCE IRELAND
60% or less 2.40% 2.50% 2.60%
70% or less 2.55% 2.65% 2.75%
80% or less 2.70% 2.80% 2.90%
90% or less 2.85% 2.95% 2.99%
AVANT MONEY
60% or less 2.10% 2.25% 2.45% 2.65% 2.85%
70% or less 2.25% 2.40% 2.60% 2.80% 2.99%
80% or less 2.35% 2.50% 2.60% 2.90% 3.10%
90% or less 2.65% 2.65% 2.75% 2.99% 3.10%

Source: Finance Ireland, Residential Mortgages Rates, June 2021; Avant Money Residential Mortgages Rates, June 2021.

Why Have a 30-Year Fixed Rate Mortgage?

Simply put – you know what your mortgage will be moving forward. In 2020, we saw mortgage rates hit one record low after another. In 2021, we have seen historically low interest rates. We cannot predict the future, but there is a possibility they could rise again.

The comfort of knowing your payments will not change during your term, can position you to plan properly for you and your family’s future.

This long-term fixed rate mortgage model is new to Ireland but has existed in other countries for some time. We expect ICS Mortgages to follow suit and offer long term fixed rates in the future. However, we do not expect our high street lenders to follow.

At Mortgage123, we are proud to be part of an exclusive club who can avail of these innovative Avant Money mortgages, as well as Finance Ireland and ICS Mortgages.

Simply put – you know what your mortgage will be moving forward. In 2020, we saw mortgage rates hit one record low after another. In 2021, we have seen historically low interest rates. We cannot predict the future, but there is a possibility they could rise again.

The comfort of knowing your payments will not change during your term, can position you to plan properly for you and your family’s future.

This long-term fixed rate mortgage model is new to Ireland but has existed in other countries for some time. We expect ICS Mortgages to follow suit and offer long term fixed rates in the future. However, we do not expect our high street lenders to follow.

At Mortgage123, we are proud to be part of an exclusive club who can avail of these innovative Avant Money mortgages, as well as Finance Ireland and ICS Mortgages.

Apply for a 30-year fixed rate mortgage now

So, what are you waiting for? Avant Money mortgages are accessible through their broker network in Ireland. We are delighted to be part of this exclusive club. At Mortgage123, we can give you the best quote for you.

Long-term fixed rates may not be for everyone, but a good broker will guide you through your options.

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