Post Office launches 5 year fixed rate mortgage at 2.63% Go compare with our comparison table

Post Office launches 5 year fixed rate mortgage at 2.63%

07 February 2013 / by Isabel Buxton

Market-leading offer for those with a 40% deposit or more

With the Government offering cheap money to banks and building societies to encourage better mortgage deals, the Post Office has launched a market-leading 5 year fixed rate mortgage at 2.63%. This mortgage deal is available to people who have at least a 40% deposit. After the 5 year fixed rate term, the mortgage rate will revert to the Bank of England Base Rate plus 3.99% (variable) – currently 4.49%. With this mortgage deal, there's an arrangement fee of £1,495 which is due on mortgage completion. However, this can be deferred until the mortgage is repaid. If you prefer not to pay an arrangement fee, the Post Office also offers a 5 year fixed deal at 3.15%.

If you're looking to for a shorter fixed rate timescale, the Post Office 2 year fixed rate mortgage (available for loans up to £350,000) provides an initial rate of 2.35% for 2 years, reverting to the Bank of England Base Rate after 2 years plus 3.99% (variable) – currently 4.49% – for the rest of the mortgage period. This deal is available if you have at least a 40% deposit (60% loan to value). With this mortgage deal there is an arrangement fee of £995, which is due on mortgage completion but can be deferred until the mortgage is repaid.

The Post Office has also launched a 3 year fixed rate mortgage at 2.68% for people who have a 25% deposit or more (75% loan to value). The rate will revert back to the Bank of England Base Rate after 3 years plus 3.99% (variable) – currently 4.49% – for the rest of the mortgage period.

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Post Office Mortgage Deal Selection - Call Direct

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed

1.98%

Reverts to 4.24%

5

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.50% 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.