Post Office UK cuts mortgate rate

The Post Office® today announced an interest rate cut to its three year fixed rate mortgage to 5.48 per cent – making it the best mortgage deal of its kind on the high street.

This is the second rate cut to the Post Office®’s three year fixed rate mortgage in two months, and the third since its launch in November 2007 when it offered a rate of 6.09 per cent.

The mortgage continues to carry its low fixed arrangement fee of just GBP 399 and can be taken out on up to 95 per cent of a home’s value. There is no higher lending charge or extended tie-in, giving Post Office® customers a market leading deal.

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 of England.

Post Office® has also slashed the rates of its three year fixed buy-to-let and self-certification mortgages to 5.99 per cent.

Post Office® director of lending Gary Fitton said: “These new rate cuts put our mortgage range at the top of the comparison tables, further proving our commitment to offering customers transparent and excellent value for money products.

“At a time when the mortgage market becomes ever more complex, and the credit crunch puts pressure on consumers looking for a good deal, the Post Office® 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.

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.