It is also cutting rates on a number of its fixed rate products. The largest cut is to its two year fixed rate at 90% LTV by 1.24% – from 5.59% to 4.35%. This product has a £995 arrangement fee.
New 60%, 75% and 80% LTV three year fixed rates with no arrangement fee are also available.
The new mortgages are as follows:
• Two year fixed rate (£1,495 fee) at 2.35% (60% LTV)
• Two year fixed rate (£995 fee) at 2.69% (75% LTV)
• Three year fixed rate (£1,495 fee) at 2.75% (60% LTV)
• Three year fixed rate (£995 fee) at 2.99% (75% LTV)
• Three year fixed rate (no arrangement fee) at 3.25% (75% LTV)
• Three year (£995 fee) fixed at 4.59% (90% LTV)
• Five year (£1,495 fee) fixed rate at 2.89% (60% LTV)
• Five year (£995 fee) fixed rate at 3.09% (60% LTV)
• Five year (£995 fee) fixed at 3.19% (75% LTV)
The Post Office now offers 12 products with no arrangement fee or booking fee. Eight of these also have free standard valuation and free standard legal fees for those applying to remortgage.
The new products with no fees are:
• Two year fixed rate (fee free) at 3.99% (80% LTV)
• Three year fixed rate (fee free) at 3.49% (60% LTV)
• Five year fixed rate (fee free) at 3.59% (60% LTV)
John Willcock, head of Post Office Mortgages, said: “Our commitment to our customers is fundamental to us and this is reflected in the service and rates we are able to offer which appeal to all types of borrowers, whether they are a first-time buyer with a small deposit, a mover or a remortgage customer with more equity.
“The huge reduction we have made to the rate on our two year fixed rate (4.35% from 5.59%), requiring just a 10% deposit, is very first-time buyer-friendly and will provide a helping hand for those looking to step on the property ladder.”
