Money News

Post Office cuts fixed and tracker mortgage rates

Dominic Welling dominic.welling@consumerchoices.co.uk

The Post Office has shaved over 0.25% off some of its mortgage deals.

The Post Office has cut mortgage rates across its range of fixed and tracker products.

In addition, the lender has launched a new two-year tracker with a rate of 2.85% for people who have a 35% deposit.

The fixed rates have been cut on all ranges up to 85% loan-to-value (LTV) across the Post Offices’ two-, three- and five-year options.

Lifetime trackers have also been reduced at 80%, 85%, and 90% LTV.

Examples of the best rates on offer include:

• New two-year fixed rate at 2.85% (65% LTV) - £1,495 fee
• Two-year fixed rate at 3.94% (was 4.29%) (85% LTV) - £995 fee
• Three-year fixed rate at 4.69% (was 4.95%) (85% LTV) - £995 fee
• New buy-to-let lifetime tracker at 4.99% (75% LTV)

Marco Hughes, director of personal lending at the Post Office, said: “We constantly review our mortgage range to ensure we are offering customers choice and value for money.

“All Post Office customers benefit from a low revert rate, which provides genuine value, not just for the initial period but throughout the life of the mortgage.”

Chris Eagle, director of marketing at Creditchoices.co.uk, said: “The Post Office has made some significant changes to its mortgage range. The two-year fixed rate at 3.94% is now very competitive.

“However there are many deals available at the moment all of which suit different people and their individual circumstances. The key is to compare what types of mortgages are out there and make an informed decision instead of getting blinded by headline rates.”