Post Office launches seven-year fix

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Post Office Money Mortgages is launching a range of loans, including its first seven-year fixed rate.

The seven-year mortgage is fixed at 2.59 per cent at 75 per cent LTV. It has early repayment charges of 4 per cent until 30 November 2020, 3 per cent until 30 November 2022 and 2 per cent until 30 November 2023.

The lender says it is bringing in the seven-year loan due to customer demand for a longer term loan shorter than ten years.

The lender has also brought in a three-year fixed loan at 2.16 per cent and a five-year fix at 2.49 per cent, both at 85 per cent LTV.

The new range also introduces reduced Help to Buy rates, and new deals for buy-to-let customers.

The new rates also feature cashback offers for first-time buyers.

These include £500 cashback on completion for two-year fixes at 2.69 per cent at 90 per cent LTV and for three-year fixes at 2.84 per cent at 90 per cent.

Both loans have a free valuation.

Post Office Money Mortgages John Willcock says: “We are continuing to improve our mortgage offering across the board and adding a seven-year fixed rate for the first time allows us to give customers a wider range of choice and allowing them to take advantage of historic low interest rates.

“As strong supporters of the Help to Buy scheme, we are also pleased to be able to cut rates for those striving to get onto the property ladder.”