Post Office announces cut to mortgage rates

Date:Monday 16th August 2010
Author: Max Freedman

The Post Office has announced it is to reduce the rates it charges on three of its mortgage products.

New interest rates will be applied across all fixed-rate deals with a loan-to-value (LTV) of up to 85 per cent on its two, three and five year deals.

As a result of the reduction in rates, prospective buyers can now access a two-year fixed-rate deal with a LTV of 85 per cent for a rate of 3.94 per cent.

Reductions on lifetime trackers have been brought in on the 80, 85 and 90 per cent LTVs and a new buy-to-let lifetime tracker has been introduced with a 75 per cent LTV and a rate of 4.99 per cent.

Post Office director of personal lending Marco Hughes said: "Through these latest reductions, customers can benefit from our lowest fixed rate ever, at just 2.85 per cent for two years."

The cuts may be good news for first-time buyers, following the recent statement from John Charcol that a large deposit is still needed to secure a mortgage.