Post Office cuts mortgage rate – again

The Post Office has made a further rate cut to its three year fixed rate mortgage taking it to 5.34 per cent, creating the best deal of its kind on the high street.

The mortgage combines not only a leading rate, but also one of the lowest arrangement fees currently available at just £399, and can be taken on up to 95 per cent of a home’s value, giving Post Office customers a market leading deal. A lending fee of £195 is payable at either the beginning or the end of the mortgage term.

In support of the product’s transparency and great value it has been awarded a rare five star rating from Moneyfacts.

Bucking the trend of the current market, this is the third cut to the Post Office’s fixed rate mortgage since its launch at the end of 2007:

September 2007 launched with rate of 6.09 per cent
November 2007 - 5.64 per cent
January 2008 - 5.48 per cent
February 2008 - 5.34 per cent

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. Its early success has now led the Post Office to extend the trial to other branches across the UK. However, anyone wishing to find out more can simply call 0800 707 6204. Further information is also available at postoffice.co.uk.

Post Office has also cut rates on its three year fixed buy-to-let and self-certification mortgages from 5.99 to 5.79 per cent, also making its self-certification product the best deal of its kind available.

Post Office director of lending Gary Fitton said: “In the current market we are keen to pass on as much value as possible to our customers, which is why we have reduced our rates even further today.

"People who are looking to get on the property ladder or who are coming to the end of a fixed rate deal, face either high arrangement fees or SVRs. Our three year deal offers a low-cost product that guarantees customers peace of mind with one of the lowest fixed rates on the market, coupled with a low arrangement fee.

“The aim of our trial is to identify the need for straightforward mortgages in what is already a confusing market for customers. We intend to consistently provide good initial and long-term value with no hidden charges. Early customer demand has already reflected a need for this kind of approach – causing us to widen the trial to include other branches across the UK.”

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.

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.