Post Office launch lowest ever 2 year fixed rate mortgage Go compare with our comparison table

Post Office launch lowest ever 2 year fixed rate mortgage

07 June 2013 / by Isabel Buxton

In the current economic climate, the vast majority are feeling the pinch when it comes to living expenses – and for many of us, mortgage repayments are one of the biggest financial headaches. 

Fixed rate mortgages can be a reassuring prospect for many homebuyers as they offer the security of stable rates for a set period. The highlight of the Post Office new range is their lowest ever 2 year fixed rate:  1.70% fixed until 31/08/2015 up to 60% LTV with a £1,995 arrangement fee. This rate is available to all borrowers, from first-time buyers to those looking to remortgage, and offers a maximum loan of £500,000.

 

Features of a Post Office mortgage

 

The Post Office offer a range of different mortgage products, and some of the features include:

- A dedicated case manager to help you with your application process

- UK-based call centres

- A decision in minutes when you apply online

- Mortgages provided in partnership with the Bank of Ireland UK

- A range of fixed rates available ranging from 60% to 90% LTV, as well as a wide range of tracker mortgages


Compare other fixed rate mortgage deals here >>

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Post Office Mortgage Deal Selection - Call Direct

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed Rate

1.78%

Reverts to 4.24%

3 Years

60%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.50% APRC. This is the cost of the mortgage over the full term.
Fixed

2.11%

Reverts to 4.24%

5

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.30% APRC. This is the cost of the mortgage over the full term.
Lifetime Tracker

4.24%

Lifetime of the mortgage

90%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.