Post Office Cuts Interest Rate on Selected Fixed Rate Mortgages

Fixed rate mortgage products have been cut by up to 0.4% by the Post Office. It has also reduced or removed arrangement fees on selected products.

The largest cut is to its five year fixed rate mortgage on with up to 75% LTV. The rate has dropped from from 3.99% to 3.59% and the £1,495 arrangement fee on this product has also been removed.

Further products which have also had their arrangement fees totally removed include:

• Two year fixed rate (no fee) at 3.65% (75% LTV)
• Three year fixed rate (no fee) at 3.79% (75% LTV) includes valuation and standard legal work
• Five year fixed rate (no fee) at 3.59% (75% LTV)
• Five year fixed rate (no fee) at 4.09% (75% LTV) includes valuation and standard legal work

As you can see from the above, some of the mortgages also have free standard legal work and a free standard valuation.

The Post Office has also introduced Mortgage Specialists to five of its larger branches in the UK – Birmingham, Solihull, Walsall, Norwich and Luton. This is a pilot offering but is planned to be rolled-out across the country.

These Mortgage Specialists will be able available to discuss each individuals needs and answer questions to help customers make an informed decision about the suitability of the products with the majority of customers being able to get a decision in principle within minutes.

First time buyers, those wishing to move, or customers looking to switch to a better deal can book a free, no-obligation appointment in selected branches.

Mike Cook, Head of Post Office Mortgages said: “We constantly review our mortgage range to ensure we are offering customers choice and value for money.

Many recent headline-grabbing rates have large booking or arrangement fees, and require a much larger deposit.

Our new range means many customers with 25% deposit or less can benefit from great fixed rates with no arrangement fee, and some with valuation and legal fees included too. These deals will particularly help remortgage customers reduce their monthly payments without having to pay upfront fees.”

MoneyHighStreet comments: “A welcome move that will no doubt help some looking to take out a mortgage or those looking to remortgage. With products available with no upfront fees there are more options for those struggling with these often high costs at a time they are looking to boost the deposit they have as much as possible.

“Do be careful though to check the interest rate on your remortgage and work out your total costs, based on the monthly repayments and the loan period, including any upfront fees, to give you the total amount you will be paying.

“The better deals will still invariably go to those who can provide a bigger deposit, or in other words need a smaller loan to value (LTV). Equally there is a premium to pay for avoiding the upfront fees – lenders will look to recoup costs somehow.

“Check your figures and of course opt for the best deal that covers your particular circumstances. It will pay you to take your time to get it right.”

You can get details on the new mortgage range and rates online at www.postoffice.co.uk/mortgages or from any one of over 11,500 Post Offices branches across the UK.