The product has a fixed rate of 4.55% and does not require a fee. It has also launched a two-year fixed-rate 90% LTV mortgage at 3.75% – second to Chelsea in terms of rates but with a lower fee.
Moneyfacts press officer Rachel Springall said the Post Office five year 90% LTV deal was the best deal on the market by far: “It is a really good deal.”
She said any move to cut rates further on high LTV mortgages was likely to come from institutions like the Post Office rather than large lenders: “It will only take one bank to do it and then they will all follow suit.”
A five-year fixed-rate 60% LTV product at 2.74% has also been launched by the Post Office alongside four other products.
APH Financial managing director Steve Biggs said that the direct-only lender needs to open up to the broker market.
“I’m confused why a state owned public limited company is only offering its ’Bank of Ireland’ mortgages to less than half of the UK mortgage population by not offering their products through intermediaries.”
