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We like the fact that the Post Office is still offering 90% mortgages when lots of other lenders have withdrawn them.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 Any products featured may be withdrawn by their provider or changed at any time.
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