Post Office cuts fixed and tracker mortgage rates

Wednesday, 21 September 2011 06:00

The Post Office has cut its mortgage rates by as much as 1.24 per cent as part of a radical shake-up of its home loan products.

With an average reduction of 0.64 per cent across all of its fixed and most of its tracker rates, the firm believes it offers excellent value to home loan customers.

The biggest reduction is on its three-year fixed rate at 90 per cent loan-to-value (LTV), which is coming down from 5.99 per cent to 4.75 per cent.

Meanwhile, its five-year fixed rate has been slashed from 6.15 per cent to 4.99 per cent for the same LTV.

Post Office head of mortgages Mike Cook said: "Many of the five-year fixes that are heavily advertised are only for borrowers with a large 25 per cent to 40 per cent deposit, which excludes many first time buyers or those moving up the property ladder.

"If you only have a ten per cent deposit, our 4.99 per cent five-year fixed rate offers excellent value, and protects borrowers from any potential bank base rate rises during the fixed rate period," he added.

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