Post Office launches new  tracker and fixed rate mortgages Go compare with our comparison table

Post Office launches new tracker and fixed rate mortgages

04 October 2010 / by Rachael Stiles

The Post Office has announced the addition of new deals to its mortgage range, including two year trackers, fixed rate, fee-free deals and buy to let products.

In its already 'market leading' mortgage range, rates have been cut even further, the Post Office has revealed, including a two year tracker mortgage at a rate of 4.69 per cent and offering up to 90 per cent loan to value.

In the fixed rate arena, the Post Office has reduced its rates by up to 0.34 per cent, and borrowers have the option of paying a fee or a higher rate; the 80 per cent LTV two year fixed 'fee-free' rate is 4.25 per cent, suitable for those who are looking to cut the initial cost of the mortgage, or those who opt to pay a fee instead can get a rate of 3.95 per cent.

Several lenders now offer the option of paying a fee in exchange for a lower interest rate, which can also suit those borrowers who have already cleared a significant proportion of their mortgage balance.

A new three year fixed rate of 3.35 per cent is available for up to 65 per cent loan to value, or a rate of 5.69 per cent comes with a 90 per cent LTV.

The Post Office's five year fixed rate mortgage now costs 4.95 per cent, for up to 85 per cent loan to value.

The Post Office is also offering a new buy to let mortgage, with a rate of 4.78 per cent fixed for two years, and a loan to value of up to 65 per cent.

Marco Hughes, director of personal lending at the Post Office, said: "We are committed to helping as many borrowers as possible find an affordable mortgage that meets their needs."

He hopes that the new rates and no arrangement fee on a selection of Post Office mortgages will encourage borrowers to switch to a better deal, since figures from the FSA show that 37 per cent of borrowers are paying 4.50 per cent or more but are put off because they think it costs too much to switch.

For remortgage customers or those looking for a first time buyer mortgage, Mr Hughes expects the 'fee saver' two year fixed rate to offer an affordable option, as it "significantly reduces the overall cost of buying a house."

Mr Hughes added: "Many of our mortgage deals are currently Best Buys, reflecting our promise to offer competitive market leading rates. As we continue to expand the range of mortgages on offer, we stand by our values of providing transparent fees and giving long term value for the life of the mortgage."

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