Mortgage rates cut by the Post Office

Date:Monday 25th January 2010
Author: Susanna Kavka

The Post Office has announced it is to cut the rates across its range of mortgages.

Both tracker and fixed-rate products are set to benefit from having their introductory rates reduced.

A tracker product with a loan-to-value (LTV) of 60 per cent has had its rate cut from 3.29 per cent to 2.99 per cent.

For borrowers who would prefer to take out a five-year fixed-rate deal, there is now a rate of 5.25 per cent on an 80 per cent LTV, a reduction from the previous rate of 5.75 per cent.

Consumers with a fixed-rate product have a revert rate of 1.99 per cent, plus the Bank of England base rate after their initial loan period has ended.

Post Office head of lending Az Alibhai said: "All our mortgages come with an upfront low fixed arrangement fee, making it easy for customers to understand the overall total cost of their mortgage."

It is the second time in as many months that the Post Office has cut the price of its mortgages, with its rates being cut back in December across all of its products.