View more on these topics

Post Office cuts its fixed rate mortgages

The Post Office has announced its fourth rate cut of the year to its fixed rate mortgages, which its says reflect its ambition to become a leading player in the mortgage market.

Following cuts to the range in January, February and March, the Post Office has now reduced the rates on its two and five-year fixed rate deals at 60%, 75% and 80% LTV. 

The new rates are available with immediate effect and are available online and from Post Office branches across the UK.

It is now offering a two-year fixed rate at 3.15%, at 75% LTV, a three-year fixed rate at 4.09% at 60% LTV and a five-year fixed rate at 4.84%, up to 80% LTV.

Marco Hughes, director of personal lending at the Post Office, says: “We believe in offering customers long-term value and we have demonstrated this by cutting our mortgage rates for the fourth time this year. 

“When combined with our low revert rate these reductions further prove our commitment to providing genuine value, not just for the initial period, but throughout the life of the mortgage.

“The Post Office is a committed player in the mortgage market, and we are constantly challenging the traditional high street lenders. To support this we are dedicated to growing and expanding our mortgage range and expect to announce further new rates and products in the near future.”

Recommended

Leeds launches five-year fixed range

Leeds Building Society has launched a five-year fixed rate range with rates from 4.85% which includes a range of fee-assisted deals.

Post Office deal is just Mandelson’s vote-winning ploy

The announcement last week about the Post Office offering 90% LTV deals is clearly a political move by business secretary Peter Mandelson. If the Post Office is well loved by the community why did the government close thousands of branches? People are not stupid. Labour has had 13 years to introduce an account accessible to […]

Professionals may escape the regulatory net

Professional landlords could be exempt from buy-to-let regulation under government plans to review how the sector will be regulated. The Treasury plans to extend the Financial Services Authority’s remit to include buy-to-let mortgages and launched a consultation last December to find out what the industry thought of the proposals. The Treasury has now published its […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Problem Mortgage 24th May 2011 at 2:31 am

    Is the Post Office still competitive for mortgages?

  • salil chaudhari 8th April 2010 at 8:36 am

    These deals are negotiated by the Post office to be sold exclusively through the PO network. We would love it if mortgages were sold through the broker network as we have qualified advisers. PO’s dont have qualified advisers behind the counter and there is no privacy either. Their sales are non advised and can you imagine what impression other customers in the queue will get when the counter staff are not able to answer them if they fall within the FSA regulations and become advised sales.

  • Mary Lockyer 7th April 2010 at 1:50 pm

    While the housing market is running at such a slow pace, ie half the number of first time buyers, Lenders may be able to support this distribution model, however when things (hopefully) pick up how will they have the staff needed to suddenly cope with a surge in demand, the demise of trained qualified brokers will lead to a different crisis at some point, the value of face to face interviews, knowing your clients cannot be superceded by an on line offering, since when do Post offices have Cmap qualified staff in them, new one on me.

  • Gray Haired Underwriter 7th April 2010 at 12:18 pm

    Where is the Post Office getting its funding from? And why is everyone talking about the Post Office when they know BOI underwrites all of the PO mortgages – PO is surely just a change of brand name for Bristol & West. I certainly hope that this is not just another case of lender obtaining State assistance to get its house in order and undercut the non-subsidised and prudent part of the market

  • RW 7th April 2010 at 11:29 am

    Once again another example of the uneven market place brokers have to work in. There is no business sense in charging a fee when recommending a Post Office product.

  • John 7th April 2010 at 11:24 am

    I’m a mortgage broker myself and I would love access to deals like this, as would my clients. This would also generate much more business for the Post Office and make sense all round.

  • Martin Tapper 7th April 2010 at 11:20 am

    There is little mileage in hoping and arguing that lenders should supply through brokers. With the access to market and credibility that the PO has, they may well percieve little need to go via brokers in the same way as HSBC.
    The only opportunity is to charge a fee for recommending the best deal, which requires a good relationship with your client. The erosion of the intermediary service is a serious potential issue. The best we can hope for is that the increased competition from such lenders will fuel the need for more competitive products across the whole market.

  • anonymous 7th April 2010 at 11:05 am

    Why at a time when people are supposed to be treated fairly is it becoming more common to find the best rates with lenders who do not use the broker network. Ofcourse we can charge a fee but many people are put off by paying extra fees the costs of mortgages are high enough for some people as it is without adding more fees to them.

  • Beverley Dunne 7th April 2010 at 10:52 am

    If it is the best advice and competitive, can’t you charge your client a fee and still recommend the Post Office? Even if no fee is charged, if it is the best deal would n’t the broker who is totally trusted by their client (as stated by the first correspondent) still recommend the Post Office? If they deal with their clients holistically they will make money from other services provided and be happy in the knowledge that the client has benefitted from their advice.

  • Ken Dale 7th April 2010 at 10:23 am

    I dont have a problem with the post office offering competitive mortgage rates, my only gripe is why the advice and recommendation cant be done together with existing ifas/mortgage brokers?

  • Alan J Nadin 7th April 2010 at 10:14 am

    Great for choice, all well and good. Why not offer to brokers and be seen to offer all the public access to the PO through all channels. Not all clients search the net, or go direct, they do trust their IFA/Broker completley to give them the best advice and deal. This may open up the lender argument about how whole of market is the broker offering, so in the same vein, open up the direct channels and become the true force you desire as a lender with high quality clients from this sector.
    There is another way to becomming a dominant force and with thousands of brokers at your disposal, it surely gives the PO something to consider?!