Post Office cuts mortgage rates and launches new range of products

The Post Office has announced the upcoming launch of a new range of 75 per cent loan-to-value LTV mortgages, aimed at enabling more first-time buyers get a foot on the property ladder.

The new range, which will be made available at Post Office branches across the UK, includes a tracker mortgage with a rate of 3.19 per cent, alongside a number of fixed-rate deals, including two, three and five-year deals with rates starting at 3.89 per cent.

At the same time, the lender has also confirmed that it has cut the rates on both its fixed and tracker mortgages, with these to take immediate effect on its 60 and 80 per cent LTV products.

Announcing the news, Post Office mortgage manager Alistair Watts said: "With speculation that we could see a rise in the bank base rate soon, we've acted early and improved the rates on our fixed rate mortgages to allow customers to lock into a great rate now.

"For existing homeowners, staying on their current SVR may seem like the best thing, but even ahead of any rises in the base rate we'd encourage them to look around to see if there's a better deal available elsewhere."

This comes just days after fellow lender Santander reduced the rates on its five-year fixed mortgages by as much as 0.25 per cent, while also re-launching its own 70 per cent LTV product.

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2010-02-19 13:31:01 © Moneyextra.com