The Post Office cuts its mortgage rates.

 The Post Office recently advised of a substantial cut to the current mortgage rates it offers. It predicts that the cuts will place some of its mortgage products on the very top of the mortgage market best-buy tables. It announced that cuts of just over 1% will apply to both fixed rate and tracker rate mortgage products and the cuts will take effect immediately.

The highest cut in its mortgage rates will be applied to their 5 year fixed rate mortgage at 75% LTV, the rate has been cut by 1.01% and is now down to 3.38%, the new offer has a £995 fee. The rate on its 2 year fixed mortgage deal has also been cut for those borrowers with a 35% deposit, the deal will now be made available at just 2.73% with a £995 fee. On its 3 year fixed rate mortgage deal the rate is now 2.95% with a £995 fee.

Mike Cook who is the head of Post Office Mortgages commented saying that the lender is happy to make the announcement that their mortgage product range has expanded. He added that the Post Office have expanded their range to include very low rates on fixed and tracker mortgages at varying deposit levels. The lender advises that its mortgage book has grown a great deal since the product launch and now they are planning to offer their products to an increasingly wide range of customers.

Changes to the Post Office's mortgage rates will offer opportunities to home-owners with less equity. For example their 2 year fixed mortgage deal has been made available for up to 80% LTV at a rate of 3.29% and their 3 year fixed mortgage deal is available for 85% LTV at 3.89%. They are also offering tracker mortgage deals and lower fee products to reduce the cost of a mortgage deal.