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.
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.
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 Moneyfacts.co.uk, 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.”
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.