The five-year fix comes with a £1,495 fee and a reduced rate of 2.99 per cent, down by 0.2 per cent from 3.19 per cent.
Two new products with no arrangement fee are also being launched by the direct-only lender.
A three-year fixed rate of 3.19 per cent is available from today up to 60 per cent LTV with no fee. A five-year fixed rate of 3.25 per cent up to 60 per cent LTV is available with no fee.
Post Office head of mortgages John Willcock says: “We constantly review our mortgage range to ensure our customers receive the best possible value along with great service. A five year mortgage under three per cent is extremely good value, and many of the best competitor offers, recently introduced, require a further 15 per cent deposit and £2,000 fee.
“We are also aware that customers who want a smaller loan can be put off by paying arrangement fees, so we have expanded our comprehensive no-fee range. We have a broad range to suit first time buyers, movers and remortgage customers, from as little as 10 per cent deposit.”