It’s the question many Irish homeowners never expected to hear again: “tracker mortgages might be back.” Or at least, something very close to them. Avant Money, the lender known for shaking up the Irish mortgage market, has launched a brand-new product—the Flex Mortgage—that has more than a few familiar notes for those who remember the golden era of tracker mortgages.
So, what is a tracker mortgage, and does Avant’s Flex Mortgage truly compare? Is this a return to the good old days—or just a smart marketing twist? Let’s dig in.
What is a tracker mortgage?
A tracker mortgage is a type of home loan where your interest rate is directly tied to a benchmark rate—usually the European Central Bank (ECB) base rate—plus a fixed percentage added by your lender. This margin remains constant, but your overall tracker mortgage interest rate rises or falls in line with changes to the ECB rate.
For example, if the ECB rate is 1.5% and your lender’s tracker margin is 1%, your tracker mortgage rate would be 2.5%. Should the ECB rate go up or down, your mortgage repayments would adjust accordingly. Simple as that.
You might hear people ask, “what is a tracker mortgage Ireland?”—and that’s your answer. It’s the one mortgage type that dances to the tune of the ECB rather than a bank’s internal pricing model. This makes them more transparent—and potentially cheaper—especially during periods of low interest rates.
When did tracker mortgages start and stop in Ireland?
Tracker mortgages were once a defining feature of the Irish housing market, offering unmatched transparency and value during the property boom. In this section, we’ll explore how these ECB-linked loans rose to prominence in the early 2000s—and why they vanished almost overnight in the aftermath of the global financial crisis.
When tracker mortgages were introduced and became popular in Ireland
Tracker mortgages were introduced in Ireland in the late 1990s, gaining serious popularity during the early 2000s, especially around the Celtic Tiger years. Back then, the ECB base rate was low, and the Irish banking sector was more than happy to offer homebuyers low tracker mortgages rates with attractive margins above the ECB rate.
They were loved for their transparency, predictability, and—at the time— exceptionally low interest rates. It’s no surprise that many Irish borrowers still look back fondly and ask, “what is a tracker mortgage and why did they disappear?”
When and why tracker mortgages were stopped
So, when did tracker mortgages stop in Ireland? The answer lies in the aftermath of the 2008 global financial crisis..
When the ECB slashed interest rates to historic lows, Irish banks suddenly found themselves locked into tracker products that were no longer profitable. The result? Tracker mortgages were discontinued and stopped being offered in Ireland for new customers around 2009, and while existing customers could hold onto theirs, new ones were firmly off the menu.
This shift was not due to regulatory bans but simple economics: tracker mortgage interest rates in Ireland had become unprofitable for banks.
Are tracker mortgages still available in Ireland today?
If you are asking, “are tracker mortgages still available in Ireland?” — the short answer is: No—at least not in their original form.
Banks like Bank of Ireland and others no longer offer new tracker products, and those who still hold one guard it like the crown jewels. If you’re wondering “can I get a tracker mortgage in Ireland?”, the answer has long been “not unless you already have one.”
But that brings us to something interesting on the horizon…
Avant Money’s new tracker-like mortgage: How it works
With tracker mortgages in Ireland long thought extinct, Avant Money’s Flex Mortgage is making waves because it looks, walks, and talks a lot like the classic tracker. While it’s not a traditional ECB tracker, this new mortgage behaves in a familiar, transparent way —earning it a reputation as the closest thing we’ve seen to a tracker mortgage in over a decade.
How the Flex Mortgage Works
Avant Money’s Flex Mortgage is a variable-rate mortgage linked to the 12-month Euribor rate (Euro Interbank Offered Rate), a key benchmark used across the eurozone.
Here’s what you need to know:
- Your mortgage rate is set at drawdown, based on the Euribor rate at the time, plus a fixed margin— currently as low as 0.90%.
- The rate is reset annually with the same margin applied to the new Euribor rate.
- It’s fully transparent and can move up or down depending on market changes.
- You can overpay without penalty and switch to another mortgage product anytime (though you may not get back on the Flex rate again if you leave it).
How Avant’s tracker-like mortgage differs from a classic tracker mortgage
Let’s not get carried away just yet. While Avant’s Flex Mortgage behaves a lot like a true tracker mortgage, there are a few key differences:
- It’s based on the Euribor rate, not the ECB base rate—the benchmark that defined classic Irish tracker mortgages.
- The reset happens annually, rather than tracking in real-time monthly as with traditional trackers.
- It’s still classed as a variable rate mortgage, which means it doesn’t offer the same contractual protections that defined classic tracker loans in Ireland.
Still, for many, it’s as close as we’ve seen in over a decade and a promising development for those who miss the clarity of ECB-linked lending.
Are Avant Money’s rates competitive?
Very much so.
Avant’s Flex Mortgage currently starts from just 3.04% (3.11% APRC) —placing it among the lowest variable mortgage rates in Ireland (at time of writing). Compared with other lenders’ variable rates, this is a highly competitive option—particularly if the Euribor rate stays stable or falls.
Looking at current tracker mortgage rates Ireland—or at least the legacy ones held by lucky existing customers—the Flex Mortgage comes surprisingly close, albeit with different mechanics. Its competitiveness depends on where Euribor trends, but in today’s landscape, it’s a strong contender.
Could This Mark the Return of Tracker Mortgages in Ireland?
That’s the million-euro question, isn’t it?
Avant’s move might inspire other lenders to follow suit and develop tracker-style mortgage products, especially if customers show strong interest. While a full-scale return of ECB-based trackers seems unlikely, this product could spark a new generation of mortgage rate tracker alternatives in Ireland.
Who should consider Avant’s tracker-like mortgage?
This mortgage product might be ideal for:
- First-time buyers who want lower monthly repayments
- Homeowners willing to take a bit of risk in exchange for potential long-term savings
- Borrowers who value flexibility and transparency
- Those unsure about committing to fixed rate mortgages just yet—see our guide on should I choose fixed or variable rate mortgage
Keep in mind, it’s still a variable rate mortgage, so your repayments could go up or down. But for many, that’s a risk worth taking, especially with the added flexibility.
Need help navigating tracker-style mortgages? Talk to MortgageLine
If you’re scratching your head wondering “what is a tracker mortgage rate Ireland?” or “how much can I borrow mortgage Ireland?”, that’s exactly where we come in.
At MortgageLine, we’ll help you:
- Understand if Avant’s new Flex Mortgage is the right fit for your situation
- Compare all available mortgage products on the market
- Navigate the Central Bank of Ireland mortgage rules with confidence
- Plan your application, whether you’re switching, trading up, or looking at mortgages for first time buyers
We’re here to demystify the fine print and help you make a decision that works for you. Wondering how can a mortgage broker help you? Give us a ring and we’ll talk you through it over a cup of tea (or a Teams call, if that’s more your style).
FAQs
Can you still get a tracker mortgage in Ireland?
Not in the traditional sense. Tracker mortgages tied to the ECB rate are no longer offered, but Avant’s Flex Mortgage offers a very similar setup, pegged to the Euribor rate.
Is a tracker mortgage a good idea now?
That depends on your risk tolerance. If rates stay steady or fall, you could save. If they rise, your repayments will too. It’s important to assess your personal financial situation before committing.
What are the risks of a tracker mortgage?
The main risk is that your repayments can go up if interest rates rise. This variability can make budgeting trickier for some households. However you will more than likely save over the medium term compared to those who take a fixed rate.
Ready to explore your mortgage options?
Contact us today for a free mortgage review call. We’ll help you find the rate that suits your home-buying journey.
Let’s make mortgages a little less mystifying—together.
