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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