Post Office Money is challenging competitors on the mortgage market with a new range of low-rate mortgage deals, most of which hover around the 1 per cent mark.
The main focus is on aspiring homeowners.
John Willcock, Head of Post Office Money Mortgages, comments:
“Our research shows that one in five UK adults (18 per cent) plan to move or buy their first home this year, as such we are committed to providing these people with the most competitive deals. Post Office Money has a range of products suited to the diverse needs of the UK’s potential buyers and our new range is further evidence of our commitment to providing the best value possible.”
Highlights of the new range include:
- 60% LTV 1.08% two-year tracker mortgage (£1,995)
- 60% LTV 1.17% two-year fixed rate mortgage (£1,995)
- 75% LTV 1.25% two-year tracker mortgage (£995)
- 75% LTV 1.35% two-year fixed rate mortgage (£1,495)
- 75% LTV 2.25% four-year fixed rate mortgage (£1,495)
- 85% LTV 1.99% two-year fixed rate mortgage (£1,495)
- 90% LTV 2.59% two-year fixed rate mortgage (£1,495)
- 90% LTV 3.69% five-year fixed rate mortgage (£1,495)
The deals are available at low rates which, the lender says, beat most of the offers on the market at the moment. Each mortgage comes with a relatively high arrangement fee (in brackets).
Post Office Money has several fee-free offers such as its two-year 1.78 per cent fix at 60 per cent loan-to-value (LTV) or its 1.99 per cent two-year fixed mortgage at 75 per cent LTV.
There are several other fee-free deals at higher LTVs for customers with lower deposits and available at longer fixed terms of three and five years, coming with somewhat higher interest rates for the fixed period.
Post Office Money also offers two mortgages from the government-supported Help to Buy scheme, designed to help especially borrowers with the smallest deposits (5 per cent) to get on the property ladder. There is a two-year fixed deal at 4.29 per cent and a five-year one at 4.89 per cent.
Details about the new range as well as all other products of Post Office Money are available at the lender’s website.
