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MoCo Mortgage Ultimate Review – Ireland 2024

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MoCo mortgages are the new kid on the block in the Irish mortgage market, hoping to shake things up with a new approach to mortgage applications. In our MoCo Mortgage Ultimate Review – Ireland 2024 we will give you the inside track on a MoCo mortgage and what other options are available.

MoCo

As a new entrant, MoCo are hoping to shake things up by making the mortgage application process more straightforward using open banking to make it easier to gather your statements, more flexible credit rules and removing steps to approval. So how do the new kids on the block stack up overall?

  • MoCo’s launch offering is limited to just a 3 year and 5 year fixed rate, bucking the trend of longer term fixed rates seen recently.
  • With APRC’s @ 5%+ versus the 4% deals available from Avant and AIB this isn’t a product for those after the lowest monthly repayments and is more likely to be suited to those unable to access these lenders.
  • In offering document collection through open banking and a fully underwritten loan offer without requiring Approval in Principle the MoCo are likely to be one of the easiest and fastest lenders to deal with.

That said, right now the higher rates and limited offering mean they don’t meet our best buy list for now, but if you aren’t able to access the lenders below they could still be a good option.

Rank Mortgage Product Rate Value Repayment Security Ease of Approval Approval Speed Overall Rating
#1. Avant Money Mortgage 10-30 Yr Fixed 4.25 5.0 4.0 5.0 4.58
#2. Avant Money Mortgage 7 Yr Fixed 4.25 3.5 4.0 5.0 4.13
#3. Haven Mortgage 10 Yr Fixed 3.5 4.0 3.5 5.0 3.95
#4. Avant Money Mortgage 5 Yr Fixed 4.5 2.5 4.0 5.0 3.90
#5. Haven Mortgage 7 Yr Fixed 4.0 3.5 3.5 3.0 3.55

Rating Weighting: Rate 30%, Security 30%, Approval 20%, Speed 20%, updated 26/09/2023

The key reason to go for MoCo for now is the way they approach assessing you for a loan. Initial indications are that they will focus more on future repayment ability rather than previous savings when assessing applicants and if that’s the case may offer a quicker way for some to access the housing market.

You can see how a MoCo mortgage repayment compare to the others in the market for your mortgage here.

Read on to find out if a MoCo mortgage makes sense for you and the other options for a great rate and easy approval.

MoCo Mortgage Rate and Product Overview – MoCo Mortgage Review Ireland 2024

MoCo Mortgage Pro’s & Con’s – MoCo Mortgage Review Ireland 2024

MoCo Recommendation – MoCo Mortgage Review Ireland 2024

MoCo Mortgage Alternatives – MoCo Mortgage Review Ireland 2024

MoCo In a Nutshell – MoCo Mortgage Review Ireland 2024

MoCo Mortgage Rate and Product Overview – MoCo Review Ireland 2024

MoCo Mortgage Approval Types

MoCo are selective about what they lend.

  • They offer residential MoCo mortgages of more than €125,000 only, including first time buyers, home movers and switchers.
  • They do not offer investment, buy to let or staged payment self build mortgages.

They will do a top up MoCo mortgage for home improvements etc.. and there is no need for invoices up to €70,000 which might make this an attractive option for some.

MoCo Mortgage Approval Credit Policy

MoCo are targeting would be buyers who are keen to get on the property ladder sooner rather than later. WIth rents and property prices still on the up, the traditional idea of putting 6 months of savings aside while everything continually gets more expensive may not be the best.

The indications are that MoCo are more likely to focus on you ability to pay down the track rather than how much you are putting aside each month. Making them a good option for those who want to move quickly. Although you will still need to source a 10% deposit from savings, gifts or grants.

If you are a little older then MoCo also might be for you are they allow mortgages to run up until the age of 80 if you can show your pension will still cover the mortgage repayments. That means you could apply when you are 70 for a 10 year mortgage, that’s an extra 5 years over some of the others in the market.

MoCo Mortgage Availability

MoCo mortgages aren’t available directly from MoCo, they are exclusively available through just 4 mortgage brokers across the country and are due to roll out to more in early 2024.

Getting a mortgage via a broker makes a lot of sense and is usually free.

  • They will match you to the right lender for your needs
  • Compare different rates and find you the best one
  • Help you complete your application

Make sure you use a broker who has all the lenders available though, so you get the best mortgage.

MoCo are one of the first lenders to allow you to gather your statements through open banking and verify your identity using biometrics. Both these innovations bring mortgages into the 21st Century at last and should help speed up the application process.

MoCo Mortgage Rate

MoCo offer just two types of fixed mortgage rates. A 3 year and a 5 year fixed.

In the 3 year fixed rate mortgage comparison table below MoCo mortgages come out as one of the more expensive rates currently. As they are owned by the Austrian bank Bawag and can access relatively low cost funding it is possible that these rates will improve over time, but right now MoCo are more of a service play rather than a value one.

3 Year Introductory Comparison by LTV
3 Year Fixed Mortgage Rate Avant Money MoCo ICS Mortgages Finance Ireland Haven Mortgages AIB Mortgage EBS Mortgage Permanent TSB Bank of Ireland
Up to 50% LTV 3.85% 4.80% -% 5.75% 4.75% 4.55% 5.00% 4.75% 4.50%
Up to 60% LTV 3.85% 4.80% -% 5.75% 4.75% 4.70% 5.00% 4.75% 4.75%
Up to 70% LTV 3.90% 4.80% 5.80% 5.80% 4.75% 4.70% 5.00% 4.85% 4.75%
Up to 80% LTV 4.00% 4.90% 5.95% 5.80% 4.75% 4.70% 5.00% 4.85% 4.75%
Up to 90% LTV 4.05% 5.20% 6.05% 6.15% 4.75% 4.80% 5.00% 5.10% 4.75%
*Green Rate, rates updated 02/02/24

Annual Percentage Rate Charge (APRC) represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1] You can check out the APRC of all the mortgages currently on the market using our comparison tool here.

The APRC and the interest you will pay over the lifetime of the mortgage is often driven by the rate you pay after the introductory rates above, called the ‘follow on’ rate. MoCo mortgages struggle against Avant, Haven and AIB here for long term value as well as shown in our table below.

Variable/Follow On Rates Comparison
Follow on Variable Rate Avant Money ICS Mortgages Finance Ireland Haven Mortgages AIB Mortgage MoCo EBS Mortgage Permanent TSB Bank of Ireland
Up to 50% LTV 3.75% 6.20% 6.40% 3.75% 3.75% 5.20% 4.15% 4.40% 4.15%
Up to 60% LTV 3.75% 5.95% 6.20% 3.95% 3.95% 5.20% 4.15% 4.50% 4.15%
Up to 70% LTV 3.75% 6.95% 6.20% 3.95% 3.95% 5.20% 4.15% 4.50% 4.45%
Up to 80% LTV 3.95% 6.20% 6.20% 4.15% 3.95% 5.20% 4.15% 4.70% 4.45%
Up to 90% LTV 3.95% 6.20% 5.15% 4.15% 4.15% 5.20% 4.15% 4.70% 4.75%
*Probable follow on variable rates post fixed period based on current variable rates by provider, rates updated 5/12/23. PTSB rates applicable from 17/01/24

One advantage that MoCo do have over Avant though is their cashback offer of €1,500. This will cover pretty much all of the costs in a typical mortgage switch and around half of those involved in a new mortgage.

MoCo, Avant Money and Finance Ireland have all introduced flexibility features allowing overpayments, capping exit fees and allowing home moving. MoCo will allow customers to over pay by 10% a year without incurring a fee.

Pro’s

  • Credit assessment based on income not savings
  • Faster approval, open banking and straight to loan offer
  • €1,500 cashback for both switchers and buyers

Con’s

  • High APRC versus alternatives
  • Limited availability through only 4 brokers currently
recommended

Recommendation – MoCo Mortgage Review Ireland 2024

So what’s our MoCo Mortgage Review Ireland 2024 recommendation? Right now MoCo only makes sense if you are likely to get the knock back from other lenders due to their higher rates.

This could be due to lack of savings or needing a mortgage term that takes you past the age of 75 for example. Otherwise you are probably better off with Avant Money, Haven or AIB right now.

Alternatives – MoCo Mortgages Review Ireland 2024

Standard Mortgage Average Rate (3-7yr) at LTV 50%
Fixed Term APRC Avant Money MoCo Haven Mortgages AIB Mortgage EBS Mortgage Permanent TSB Bank of Ireland ICS Mortgages Finance Ireland Bank of Ireland (Re-fixing)
3 Yr 3.87% 5.21% 4.00% 3.82% 4.20% 4.21% 4.90% 6.64% 4.40%
4 Yr 3.92% 3.78% 3.99%
5 Yr 3.94% 5.06 4.30% 3.93% 4.50% 4.43% 4.90% 6.35% 4.40%
7 Yr 3.97% 4.60% 4.33% 4.59% 6.04%
Correct as of 01/02/24. APRC = Average Rate paid across the whole mortgage term, table, excludes Mortgage value >€250,000, excludes Green mortgages
Logo 1 Best Buys

Avant Money Mortage

  • From 3.61% aprc
  • Years Fixed: 3-30
  • Approval Policy: Tight
Logo 2 Best Buys

Haven Mortage

  • From 4.00% aprc
  • Years Fixed: 3
  • Approval Policy: Complex
Green Mortgage 6 Best Buys

Bank of Ireland

  • From 3.90% aprc
  • Years Fixed: 4
  • Approval Policy: Flexible

In a Nutshell – MoCo Mortgage Review Ireland 2024

MoCo’s offering is one of the most innovative in the market due to its use of open banking, income based assessment and being able to go straight to an underwritten letter of offer. This may come in handy if you are in a bidding war for your dream home and are pitted against others only holding an Approval in Principle.

Overall it’s great to see more choice in a market that has been sorely underserved sice the exit of Ulster Bank and KBC in the last few years. More choice and competition can only be a good thing for Irish consumers.

Next Steps – MoCo Review Ireland 2024

So that’s our MoCo Mortgage Review Ireland 2024. If you want to see what you could save by calculating your repayments and see all mortgage provider rates you can click here.

If you want to know more about other mortgage providers you can click here.

If you want to know more about longer term fixed rates, you can check out our deep dive best fixed rate mortgage piece here or how fixed versus variable compares here.

If you want to know more about switching you can click here. Or you can check out our handy switching mortgage guide here and our remortgaging guide here. If you still have questions check out our switching Q&A here.

If you are thinking of freeing up some extra cash from your home, take a look at our mortgage top up tips here or if you are over 60 our equity release rundown here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here, covering not only the best rate, but also helping choose the lender most likely to approve you and helping take the pain out of the paperwork.

Frequently Asked Questions – MoCo Mortgages

Who are MoCo?

MoCo is led by former AIB executive Aidan Sherry. MoCo is owned by BAWAG a large Austrian Bank with operations across Europe. They are regulated by the Central Bank of Ireland for conduct of business rules and by the Financial Markets Authority in Austria.

Who owns MoCo?

MoCo are owned by BAWAG one of Austria’s biggest banks.

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