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Derin Clark

Derin Clark

Online Reporter
Published: 06/08/2019

Mortgage borrowers looking to fix their rate into a deal longer than five years will be pleased to see that competition within the seven-year fixed rate mortgage market has increased, with the launch of new seven-year deals from Post Office Money®.

With its new seven-year fixed mortgage deals, Post Office Money® is offering two different rates. It is offering a rate of 2.32% with a product fee of £495, as well as a rate of 2.51% with no product fees, both of which are available for moving home customers and those looking to remortgage. All these rates are on a maximum 75% loan-to-value (LTV) and the 2.51% moving home deal also offers free valuation and £400 cashback, while for those remortgaging the deal includes free valuation and no legal fees.

What other seven-year mortgages are available?

Another mortgage rate being offered that is similar to Post Office Money® is a rate of 2.38% from Yorkshire Building Society fixed to 30.9.26. This rate is available on a maximum 75% LTV and charges £495 in product fees, as well as including the incentive of free valuation. For those with a 65% LTV, Yorkshire Building Society also offers a rate of 2.25% fixed for seven years. This deal charges £495 in product fees and includes the incentive of free valuation. Virgin Money also offers a rate of 2.25% fixed to 1.11.26 on a maximum 65% LTV, which charges £995 in product fees and includes the incentive of free valuation, plus for homemovers £300 cashback and for remortgagers free legal fees.

Lowest seven-year mortgage rate

Overall the lowest seven-year mortgage rate is 1.99% being offered by Barclays Mortgage on a deal for a maximum 60% LTV and requiring £999 in product fees. This deal includes the incentive of free valuations for properties valued to a maximum £2m and, for those remortgaging, free legal fees.

Rachel Springall, finance expert at, said: “Seven-year fixed mortgages could well be popular with borrowers looking to secure their monthly mortgage repayments for a longer term. The seven-year fixed sector is relatively niche, with just a handful of lenders including this term within their range, so there isn’t too much to choose from at the moment. However, lenders competing with Post Office Money® include Yorkshire Building Society, Virgin Money and Skipton Building Society – all offering deals at 75% loan-to-value.

“Priced at 2.32%, Post Office Money ® sits as the lowest rate in the 75% loan-to-value sector, but borrowers may prefer to choose an alternative deal with cost-saving incentives. However, the best mortgage for a borrower does come down to the overall true cost, which should be worked out before committing.”


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