Post Office withdraws from buy-to-let market

The Post Office has withdrawn its entire range of buy-to-let mortgages.

The lender says it has pulled out of the buy-to-let market for the short to medium term in order to focus its efforts on helping first-time buyers, movers and remortgage customers.

It previously lent up to 80% LTV for buy-to-let mortgages and offered a range of two, three and five-year fixed rate deals.

Meanwhile, the Post Office is reducing its residential mortgage rates by up to 1.24%, bringing its five-year fix at 90% LTV below 5%.

This product how has a rate of 4.99% – down from 6.15% – and comes with a £995 fee, which the Post Office says is market leading.

The lender has also reduced the rate on its three-year fix at 90% LTV from 5.99% to 4.75%, which comes with a £995 fee.

Mike Cook, head of mortgages at the Post Office, says: “Many of the five-year fixes that are heavily advertised are only for borrowers with a large deposit, which excludes many first-time buyers or those moving up the property ladder.

“If you only have a 10% deposit, our 4.99% five-year fixed rate offers excellent value, and protects borrowers from any potential bank base rate rises.”