Post Office cuts mortgate rate

The Post Office has announced it has cut its three year fixed rate mortgage to 5.64 per cent – making it the best deal of its kind currently available.

The three year fixed rate deal is part of a range of mortgages being trialled by the Post Office in selected branches in the North, however people across the UK can apply by calling 0800 707 6204. Further information is also available at postoffice.co.uk.

The mortgage carries a fixed arrangement fee of just £399 and can be taken out on up to 95 per cent of a home’s value, giving Post Office customers a market leading deal. In support of the product’s transparency and great value it has been awarded a rare five star rating from Moneyfacts.

Post Office director of lending Gary Fitton said: “This rate cut puts our mortgage product at the top of the comparison tables, further proving our commitment to offering customers value for money products.

“As the mortgage market becomes ever more complex, our trial is investigating the need for more straightforward mortgages, providing good initial and long-term value with no hidden charges.”

The mortgage trial, launched in September 2007, follows a succession of well-received financial product launches by the Post Office which is now the fastest growing financial services provider in the UK. It has already attracted more than one million customers with its easy to understand and good value products.

A formal evaluation will take place at the end of the mortgage trial, which will inform how the Post Office proceeds with its offering.

Post Office Mortgages are provided in conjunction with Bristol and West, the Bank of Ireland’s lending arm. As a responsible lender, the Post Office applies strict lending criteria and enforces appropriate checks before an offer is made.

Customers can register their interest for a Post Office Mortgage in the trial branches, online or via the dedicated customer call centre – which is also the route through which applications can be processed. Call 0800 707 6204 or visit postoffice.co.uk.