by Mark Johnston
The post office may not be the first place that borrowers go to look for a mortgage but it is probably one of the most well established and respected institutions in the UK today.
It has an extensive history going back a few hundred years and over the years has diversified from its core business of post to offer financial services such as mortgages for the purchase of a new home.
The Post Office has recently reduced some of its mortgage range by up to a staggering 0.34%. It has also launched some new deals to attract customers which include a fee-saver deal and a two year tracker.
The rate reductions have been applied across a number of different types of mortgages so now matter what borrowers are looking for they may well be able to take advantage of the reduced rates. The Post Office has included some of their two, three and five year mortgages with different loan to value (LTV) ratios, they have also included a two year tracker mortgage with a 90% loan to value (LTV) which should be of interest to first time buyers who dont have a large deposit to play with.
Their new fee-saver product is a two year fixed rate mortgage that has no upfront fees and is offered in a 75 percent and 85 percent loan to value version. The rates start as low as 3.48 percent but the great thing is that they dont charge an arrangement fee and include a standard valuation. For those who are looking to remortgage, the deal doesn’t even charge legal fees.
Borrowers that have a slightly larger deposit can opt for a 65 percent loan to value (LTV) deal in either a two or three year fixed rate deal for 3.35 percent.
Marco Hughes, director of Personal Lending at the Post Office, says: “We are committed to helping as many borrowers as possible find an affordable mortgage that meets their needs. According to the FSA statistics, 37% of borrowers are on a rate of 4.5% or more, and are put off switching due to the perceived high costs involved. Our new ‘fee saver’ two year fixed deals should particularly help borrowers looking to remortgage, whilst for first time buyers with a 15% deposit, it significantly reduces the overall cost of buying a house.”
Some of the deals include a two year fixed rate mortgage at 4.25 percent with a loan to value of 80 percent and a three year fixed rate mortgage for 3.35 percent with a loan to value of 65 percent. They also offer the three year mortgage with an 80 percent loan to value for 5.69%.
Those looking for a longer term mortgage may be interested in the Post Office’s five year mortgage at 4.95 percent with a LTV of 85 percent.
Mr Hughes went on to say: “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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