Should we make a switch and save on our mortgage?
With some lenders reducing mortgage rates and new providers entering the market, house buyers are being urged to seek specialist advice and shop around when looking for a home loan.
Last week, Avantcard announced that it will enter the Irish mortgage market this autumn. Avantcard is owned by Spanish banking group, Bankinter, which already has asubstantial mortgage business in both Spain and Portugal. The company said switchers, movers and first-time buyers will be able to avail of the new products through a number of mortgage brokers.
“We are delighted to be entering the Irish mortgage market,” Chris Paul, CEO of Avantcard said. “Supported by our parent, Bankinter, and building on our strong consumer finance legacy, we are confident that we will be able to provide markedly better value for customers and deliver genuine, long-lasting change.”
The following day, Permanent TSB announced changes to their mortgage interest rates today, with reduction to both fixed and variable rates. The cuts will benefit both new and existing customers.
The announcements were described by Trevor Grant, Chairperson of the Association of Irish Mortgage Advisors (AIMA), as ‘good news for consumers all round’.
“It’s great to see PTSB reducing their interest rates,” he said. “Undoubtedly, the Avant Money announcement of their intention to enter the market with likely market leading and possibly record low rates, has kick-started a mortgage rate review by all lenders that’s likely to bode well for customers.”
He believes these announcements are likely to trigger rate reductions by other lenders and urged prospective buyers to shop around and not simply take a mortgage from their current bank.
“This is likely to generate a surge in switching,” Mr Grant said. “With so much market change likely, and the number of options increasing, it is now more important than ever that prospective mortgages customers obtain advice from a dedicated mortgage intermediary who can advise them on all of their market options and assist them in obtaining the most suitable product to match their unique circumstances and requirements.