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In a move that will be welcomed by those looking to buy their first home, move or remortgage, Post Office Money announced it has reduced a selection of its fixed rate residential mortgage product range. Specifically, its five-year fixed rate deal has dropped 0.05% from 2.42% to 2.37%, making it one of Moneyfacts.co.uk’s most competitive rates for those looking for a 90% loan-to-value (LTV), five-year fixed rate mortgage. This improved rate from Post Office Money sits 0.16% higher than the lowest fixed rate available at 90% LTV, however, unlike the deal with the best rate, this product benefits from no arrangement or product fees. On top of this, Post Office Money is also offering the incentive of free valuation.
When compared directly to other fee-free five-year fixed rate products available, this Post Office Money deal is currently the lowest rate available – making it ideal for those looking to save on upfront costs. Following the end of the initial fixed period, this deal then reverts to 4.74% variable for the remainder of the mortgage term.
It also offers flexible features such as the ability to make overpayments and a minimum loan value of £25,001. These factors, coupled with the high LTV, make this an ideal product for first-time buyers, those looking to take advantage of a new deal, move to a new house or invest in a second property.
Restrictions are few but the primary applicant must be able to demonstrate a minimum earned income of £20,000 per annum – although this can be made up of combined income for joint applications and remains subject to affordability – and be 75 or younger at the end of the mortgage.
See more of our best 90% LTV and five-year fixed rate mortgages for first-time buyers.
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