Post Office cuts mortgage rates for "fantastic" customer opportunity

Date:Tuesday 23rd March 2010
Author: Susanna Kavka

Marco Hughes, company director of personal lending, spoke on behalf of the firm to say it believes in offering "great rates" over the entire extent of the loan.

He said: "With speculation mounting that the base rate will move up in the next few months, these new rates give our customers a fantastic opportunity to lock in a deal now."

The Post Office has made cuts to a range of its loan categories, including a one per cent reduction of the 80 per cent loan-to-value mortgage.

An unusual increase of six per cent in lending was recorded in February by the Council of Mortgage Lenders (CML), which believes the reason for this rise in the shortest month of the year was because the stamp duty holiday had "distorted" results at the end of last year.

CML findings estimate gross mortgage lending now stands at £9.2 billion, which is six per cent less than the figure reported last year.