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Post Office mortgage rates cut and range expanded

Post Office mortgage rates cut and range expanded

19 February 2010 / by Rachael Stiles

The Post Office has cut its mortgage rates for the second time in the last month and introduced new products to its home loan range.

The cost of the Post Office fixed rate mortgage range has been reduced, effective immediately, on its two, three, and five year fixed rates with a loan to value of up to 60 per cent, and its 80 per cent LTV two year fix.

Additions to the Post Office range include a tracker mortgage with a rate of 3.29 per cent, and a new five year fixed rate mortgage at starting from 3.89 per cent.

Commenting on the rate cuts and the new options available to homeowners, Alastair Watts, manager of Post Office mortgages, said: "With speculation that we could see a rise in the bank base rate soon, we've acted early and improved the rates on our fixed rate mortgages to allow customers to lock into a great rate now.

"For existing homeowners, staying on their current SVR may seem like the best thing, but even ahead of any rises in the base rate we'd encourage them to look around to see if there's a better deal available elsewhere."

Mr Watts explained that the addition of 75 per cent loan to value deals opens up the Post Office mortgage range to a broader range of borrowers who have smaller deposits.

He added: "All Post Office customers benefit from a fixed low arrangement fee, making it easier to work out the overall cost of a mortgage and not have to worry about any hidden fees or nasty surprises at the end of the mortgage term."

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