Post Office reduces mortgage rates to best ever deals

- Table-topping rate reductions on fixed rate products

The Post Office will offer customers its best ever mortgage range as it cuts rates on many products, three of which are now the best in market.

The two year fixed rate products which top the best buy tables come without an arrangement fee. There’s also good news for second-time buyers and those looking to remortgage with a new fixed rate deal at 1.70% (£1,995 fee) at 60% LTV for two years.

The new rates include:

- Two year fixed rate (no fee) at 3.19% (80% LTV) – market leading

- Two year fixed rate (no fee) at 3.49% (85% LTV) – market leading

- Five year fixed rate (£995 fee) at 2.85% (75% LTV) – market leading with fee below £995

- Two year fixed rate (£1,995 fee) at 1.70% (60% LTV)

- Five year fixed rate (£995 fee) at 3.69% (85% LTV)

These products will be available to customers from 7 June.

John Willcock, Head of Post Office Mortgages, said: “Post Office’s new mortgage rates are our best ever and offer a range of deals for potential homebuyers, whatever their situation. The rates on many of our products have been significantly reduced, while some are also fee-free. Buyers are hungry for a good deal and our new rates offer some of the most competitive in the market. The diversity of our range means whether you’re hunting for your first ever home or looking to move, there is something suitable for your needs. We put our customers first and want to offer the best range possible to help them buy their home in the way that suits them best.

“Our two year fixed rate mortgage at 3.49% (85% LTV) comes without an arrangement fee and is ideal for those borrowers who are looking for a mortgage with a smaller deposit. Saving up the money for a deposit can sometimes seem like a real struggle so every effort must be made to keep initial costs at a low.”

Customers can pick up information about the new mortgage range and rates online at postoffice.co.uk/mortgages or from one of over 11,500 Post Offices branches across the UK. Customers can also arrange a call-back from a mortgage specialist at the call centre, via all branches, or call the Post Office directly on 0800 077 8033. To view the terms and conditions for the offer, please visit postoffice.co.uk.

Ends

FULL DETAILS OF ALL MORTGAGES AVAILABLE:

60% LTV Fixed Rates

75% LTV Fixed Rates

80% LTV Fixed Rates

80% LTV Fixed Rates

90% LTV Fixed Rates

2 year tracker

In August 2012 Post Office introduced Mortgage Specialists to four of its larger branches in the UK, and a further three branches in November 2012. The Mortgage Specialists are able to discuss each individual’s needs and answer questions to help customers make an informed decision about the suitability of the products. In addition, the majority of customers will be able to get a decision in principle within minutes. First time buyers, those wishing to move, or customers looking to switch to a better deal will be able to book a free, no-obligation appointment in selected branches.

Post Office Limited has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of many communities across the country. The Post Office has made a commitment to no more branch closure programmes. It provides around 170 different services and products spanning financial services including savings, insurance, loans, mortgages and credit cards. Post Office also offers Government services; telephony; foreign currency; travel insurance and mail services.

It serves around 20 million customers a week and half of all small businesses. 93% of the total population live within one mile of a post office and 99.7% within three miles. For many rural communities the post office is the only retail outlet. Post offices remain highly valued and trusted and are the focal point for many communities. For more information, visit postoffice.co.uk.

Post Office mortgages in 2012 have won the following awards from What Mortgage magazine – Best fixed Rate Provider and Best Online Lender for the third year, and recently have also received Best Online Lender from Your Mortgage for the fourth year running.

Post Office Mortgages are offered in partnership with Bank of Ireland UK. Bank of Ireland UK has been the exclusive partner to the Post Office for the provision of financial services and products since 2003. The partners’ venture has become one of the UK’s fastest growing financial service providers with almost three million customers and a savings book of £18 billion.

Bank of Ireland has supported customers in the UK for many decades. Bank of Ireland UK plc, is a wholly owned subsidiary of Bank of Ireland Group, separately incorporated and is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Activities related to the Post Office partnership are conducted within this entity and as such, all retail deposits up to £85,000 with the Post Office are protected under the UK’s Financial Services Compensation Scheme and ring-fenced in the UK. At 31 December 2012 Bank of Ireland (UK) plc had a loan to deposit ratio of 77% with customer deposits of £23.3 billion utilised to fund customer lending of £18 billion (primarily comprising £12.6 billion of UK residential mortgages). In November 2010, in the UK Government's report 'Securing the Post Office network in the digital age', Bank of Ireland UK received the explicit support of the Coalition Government for its continued partnership with the Post Office.

Contact - Carmel McCarthy