The lender, which does not operate through intermediaries, has cut rates on a number of products, including launching its lowest ever two-year fixed rate product at 2.35%, available up to 60% LTV with fees of £1,495.
Other products launched include a two-year fix at 2.69% available at 75% LTV with fees of £995, and a fee-free three-year fix at 3.25% up to 75% LTV.
The biggest rate reduction comes on its two-year fix at 90% LTV which has been lowered by 1.24% from 5.59% to 4.35%. Fees of £995 apply.
John Willcock, head of mortgages at the Post Office, said that the lender was looking to target first-time buyers with its new range.
“These mortgage rates are among the best and most competitive deals available in the market,” he said.
“Our commitment to our customers is fundamental to us and this is reflected in the service and rates we are able to offer which appeal to all types of borrowers, whether they are a first time buyer with a small deposit, a mover or a remortgage customer with more equity, we have fantastic deals suited to them.
“The huge reduction we have made to the rate on our two year fixed rate (4.35% from 5.59%), requiring just a 10% deposit, is very first time buyer-friendly and will provide a helping hand for those looking to step on the property ladder.”
The new mortgages available from today are:
• Two-year fixed rate (£1,495 fee) at 2.35% (60% LTV)
• Two-year fixed rate (£995 fee) at 2.69% (75% LTV)
• Three-year fixed rate (£1,495 fee) at 2.75% (60% LTV)
• Three-year fixed rate (£995 fee) at 2.99% (75% LTV)
• Three-year fixed rate (no arrangement fee) at 3.25% (75% LTV)
• Three-year (£995 fee) fixed at 4.59% (90% LTV)
• Five-year (£1,495 fee) fixed rate at 2.89% (60% LTV)
• Five-year (£995 fee) fixed rate at 3.09% (60% LTV)
• Five-year (£995 fee) fixed at 3.19% (75% LTV)
• Two-year fixed rate (fee free) at 3.99% (80% LTV)
• Three-year fixed rate (fee free) at 3.49% (60% LTV)
• Five-year fixed rate (fee free) at 3.59% (60% LTV)
Willcock added: “The Post Office is one of the fastest growing financial services providers in the UK and we constantly review our mortgage range to ensure our customers always receive the best possible value along with great service.
“Throughout 2013 we will continue to offer a broad range of competitively priced products to appeal to all types of borrowers, whether they are a first time buyer with a small deposit, a mover or a remortgage customer with more equity. We aim to at least double our gross lending in 2013.”
