Choosing the right Post Office Mortgage Deal
The Post Office offers a wide range of mortgage types, such as:
- Fixed rate mortgage deals – Post Office Fixed Rate Mortgage deals could be suitable for you if you want your monthly repayments to stay the same for a set period. At the end of your fixed rate period, the rate reverts to the Post Office’s own rate, which is the Bank of England Base Rate currently 0.5%) plus 3.99% for the rest of the term. The Post Office offers fixed rate mortgages and remortgages ranging from 60% to 95% loan to value LTV).
- Tracker mortgage deals – Post Office mortgage tracker mortgage deals follow the Bank of England Base Rate (currently 0.5%), plus an additional percentage. This additional percentage rate is set by the Post Office for the first two years. After that, the rate will always be the Bank of England Base Rate (currently 0.5%) plus 3.99% for the rest of the term. Because the Bank of England Base Rate fluctuates over time, your mortgage rate and your repayments will also go up and down accordingly – so if you do not mind your payments fluctuating, a tracker mortgage deal could be something to consider. The Post Office currently provides tracker mortgage deals at 60% and 75% LTV.
- Help to buy mortgage deals for first time buyers – The Post Office is participating in the Government’s Help to Buy scheme, which allows people with a deposit of as little as 5% to buy their own home. The scheme offers mortgage lenders the chance to lend to people with low deposits with the Government acting as a guarantor for the loan. As well as the specific criteria that are in place for the Help to Buy scheme, you will also need to meet the Post Office’s standard mortgage lending criteria.
- Buy to let mortgage deals – If you want to buy a property to rent out to tenants, the Post Office could help, with a range of fixed rate buy to let mortgage deals ranging from 2 to 5 years in duration at 60% LTV.
Why choose a Post Office Mortgage Deal?
Some of the features and benefits of Post Office mortgage deals include:
- Portable mortgage options – take your Post Office mortgage with you when you move home
- Flexible mortgage deals - Make overpayments at any time (conditions apply)
- No higher lending charge payable - these are paid by the lender
- Simple arrangement fee system – Post Office mortgage products are either fee-free of have one fee of £999
Compare the various features and benefits of Post Office mortgage offers with other leading mortgage deals on the market with our free, whole of market independent mortgage comparison service and find the best deal for you. Call our mortgage team today on 0117 332 6063.