Post Office cuts fixed rate mortgage interest rates

The Post Office has announced the second cut to its mortgage interest rate for three-year fixed rate lenders in the past two months.

Yesterday's (January 15th) reduction to 5.48 per cent comes after the product was introduced two months ago with a rate of 6.09 per cent.

Borrowers looking to take out the product also benefit from 95 per cent loan-to-value and a £399 fixed arrangement fee, as well as no higher lending charge or extended tie-in.

At the same time, interest rates for its three-year fixed buy to let and self certification mortgages were also reduced, to 5.99 per cent, leading the Post Office's director of lending, Gary Fitton, to claim their range is one of the best available.

"These new rate cuts put our mortgage range at the top of the comparison tables, further proving our commitment to offering customers transparent and excellent value for money products.

"At a time when the mortgage market becomes ever more complex, and the credit crunch puts pressure on consumers looking for a good deal, the Post Office trial is investigating the need for more straightforward mortgages, providing good initial and long-term value with no hidden charges."

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