Fresh competition has been introduced to the mortgage market.

Seventeen years after banks stopped offering tracker mortgages in Ireland, a tracker-type mortgage is coming back to the Irish market courtesy of Avant Money.

This style of mortgage is based on the rates banks lend to each other.

The 'Flex Mortgage' is considered a variable rate but is different to current standard rates, which are determined by individual banks or lenders.

On The Pat Kenny Show, Doddl.ie Managing Director Martina Hennessy said there will be annual changes to rates.

“I suppose a plus of this particular product from Avant is that you know what you're paying for 12 months, because they reprice the rate on an annual basis,”” she said.

“So when you lock in, you have that variable rate for 12 months.

“Then on the anniversary of the mortgage, whatever the prevailing euro bar rate is at that time would be what's added to your margin.”

Listen back here:

One red house on top of a pile of 50 euro bank notes cash. Image: Alamy