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Post Office launches 75% tracker deals and cuts rates

For the second time in the last month the Post Office has cut the rates on its fixed and tracker mortgage products.

The rate changes will take effect immediately and will coincide with the launch of a new range of 75% LTV mortgages.

Following cuts to the range at the end of January, the Post Office has further reduced the rates on its two, three and five-year fixed rate deals for 60% LTV and its 80% LTV two-year fixed deal.

In addition, it has introduced a range of 75% LTV mortgages, including a tracker with a rate of 3.19%, and two, three, and five year fixed products starting at just 3.89%.

With a fixed arrangement fee of £599.

Alastair Watts, Post Office mortgages manager, says: “With speculation that we could see a rise in the bank base rate soon, we’ve acted early and improved the rates on our fixed rate mortgages to allow customers to lock into a great rate now.

“For existing homeowners, staying on their current SVR may seem like the best thing, but even ahead of any rises in the base rate we’d encourage them to look around to see if there’s a better deal available elsewhere.

“The addition of our new 75% LTV range means we can now offer mortgages to an even broader range of borrowers whilst continuing to provide competitive rates and long term value.

“All Post Office customers benefit from a fixed low arrangement fee, making it easier to work out the overall cost of a mortgage and not have to worry about any hidden fees or nasty surprises at the end of the mortgage term.”

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  • Avenue & Co Private Finance 22nd February 2010 at 3:57 pm

    After detailed analysis of Post office mortgage offerings, they seem to be very poorly priced, are non advised and there are more competitive products available within every LTV bracket in the wider marketplace.

    Their Buy to Let mortgage offerings do have reasonable arrangement fees of £599- that is if you can meet the criteria for rental calculations (even though they are at 100% of pay rate). The 5 yr Fixe rate is a shocking 6.99% at 75% LTV (great if rates rise above this figure in the next five years).