Post Office launches new fixed rate mortgage - Mortgages - News - Moneyfacts


Post Office launches new fixed rate mortgage

Post Office launches new fixed rate mortgage

Category: Mortgages

Updated: 20/01/2009
First Published: 19/01/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Prompted by the base rate change, The Post Office has just launched a new range of fixed rate mortgages.

There are four mortgages in total. Option 1: rate of 4.74% fixed to 30 April 2012, the maximum loan is 75% of the property value. Option 2: the same in all respects as option 1, except that it is fixed for a longer period to 30 April 2014. Option 3: offers a rate of 5.85%, fixed to 30 April 2012. The maximum loan for this mortgage is 90% of the property value. Option 4: is the same as option 3 except that it is fixed to 30 April 2014. Other information: none of the mortgages have any extended tie-in but there is a set up fee of £599 which applies to all options.

Our tip: some added incentives can be attached to these mortgages such as free valuations or for those that want to remortgage, free legal fees, but, there is a penalty to these options. The interest rate is increased by 0.20% - so beware the freebie is not as free as it looks at first glance.

We like the fact that the Post Office is still offering 90% mortgages when lots of other lenders have withdrawn them. But it is the low set up fee and the fixed rate to 2014 which earns these mortgages four out of five Moneyfacts stars.

So, next time you're in the Post Office and hear the guy in front asking for "six stamps and a mortgage please" you know what it is all about!

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.