by Mark Johnston
The Post Office Once Again Cuts Its Mortgage Rates.
With the second phase of the Help to Buy scheme now underway it seems that some lenders are starting to come out with competitive rates on high loan to value (LTV) products.
The thing is that getting a foot on the first rung of the housing ladder is still a real struggle and saving for a deposit is often the biggest hurdle. However, deals that require a smaller deposit can go some way to easing the financial strain….
These specific mortgages are targeted at those with low to moderate size deposits.
The mortgage rate cuts have pushed the lender to the top of the best buy tables for its two and four year fixed rate products.
The lender is offering a two year fixed mortgage with a rate of 2.38 per cent which is available up to a 80 per cent loan to value (LTV) ratio and it comes with an arrangement fee of £995.
This particular deal overtakes, by a tiny margin, the West Brom Building Society’s deal. This deal is also available up to a 80 per cent loan to value (LTV) ratio but it comes with a rate of 2.39 per cent and it has a fee of just £299.
The Post Office also offers another two year deal which is fixed at a rate of 2.89 per cent and is available up to a 85 per cent loan to value (LTV) ratio and it also comes with an arrangement fee of £995.
These are not the only products that have had their rates cut. There is also a three year fixed deal with a rate of 2.74 per cent, up to a 80 per cent loan to value (LTV) ratio with a £1,495 fee.
Two four year fix mortgage deals are also offered one has a rate of 3.39 per cent up to a 80 per cent loan to value (LTV) ratio with a £995 fee and the other has a rate of 3.75 per cent up to a 85 per cent loan to value (LTV) ratio also with a £995 fee.
Lastly the lender has cut the rate of its five year fixed mortgage product which comes with a rate of 4.45 per cent which is available up to a 90 per cent loan to value (LTV) ratio with a fee of £995.
David Hollingworth of mortgage brokers London & Country, said: “There are not many four year fixed rates in the market at all as most lenders tend to concentrate on the traditional product segments of two, three and five years. That said it does no harm to have the choice and some may prefer a deal that sits in between.”
Recent data has revealed that the Post Office is therefore now offering the lowest two and four year fixed rate deals.
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