Post Office offers 5.34% three-year fixed-rate

The Post Office is gaining notoriety for its mortgage products and has just made a further cut in the interest rate on its three-year fixed-rate mortgage, down to 5.34%.

The loan is part of a range of mortgages that has been trialled by the Post Office at selected branches across the North of England. That trial is now being extended to branches across the UK.

This is the third interest rate reduction on the fixed-rate mortgage since its launch at the end of 2007, and borrowers can not only obtain a leading rate, but also one of the lowest arrangement fees currently available, at £399.

A lending fee of £195 is payable at either the beginning or the end of the mortgage term and the loan can be taken for up to 95% of a home’s value.

Taking into account product transparency and value, Moneyfacts the financial website, has awarded the mortgage a five-star rating.

The Post Office has also cut rates on its three-year fixed buy-to-let and self-certification mortgages, from 5.99% to 5.79%.

Post Office director of lending Gary Fitton says: “People who are looking to get on the property ladder or who are coming to the end of a fixed-rate deal face either high arrangement fees or standard variable rates. Our three-year deal offers a low-cost product that guarantees customers peace of mind with one of the lowest fixed-rates on the market, coupled with a low arrangement fee.”

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