Parent Avant Money expects mortgage demand to slow as Irish loan book hits €1.6bn

The parent company of Avant Money, a brokerage firm based in Carrick in Shannon, Co Leitrim, said its Irish mortgage book grew by 268 per cent to €1.6bn.

however, his Spanish counterpart Bankinter said it expects a decrease in mortgage demand after raising mortgage rates.

According to Bankinter’s results for 2022, Avant Money received new mortgages of €1.2bn per year, which tripled last year. Its total loan book, which includes its consumer finance business, has reached €2.3bn, up 132pc in 2021. The Irish business recorded revenue of €80m for 2022, up 34pc.

Commenting on the performance of the Irish industry, a spokesperson for Avant Money said that the pace of growth in new mortgages has moderated due to the rate hikes being driven by the European Central Bank. .

“We are very happy with our contribution to the group’s results,” he said. “This is an exciting time for Avant Money as we continue to bring real value and innovative solutions to Irish people.”

In 2020, Avant Money shook up the market when it launched its mortgages in Ireland, offering lower rates than its competitors.

Bankinter’s total loans exceeded €74.2bn in 2022, up 9 percent on the previous year. The number of non-performing loans was 2.1 percent.

In Ireland, the non-performing loan rate was recorded at 0.4 percent.

During a call with analysts discussing the results, Jacobo Diaz Garcia, Bankinter’s chief financial officer, said the Irish mortgage industry had performed “better than our expectations”.

“We expect continued growth in mortgage loans in 2023,” he said. “However, at a lower level now we have updated and increased rates for the new interest rate ahead of competitors.”

Garcia added later in the call that he expected a “reduction in mortgage demand in Ireland” due to the increase in its rates “over the last few months”.

Bankinter, Spain’s fourth-largest bank by market value, posted a 58 percent jump in fourth-quarter profit to €130m, helped by higher interest rates.

In 2020, Avant Money shook up the market when it launched its mortgages in Ireland, offering lower rates than its competitors.

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