Post Office launch lowest ever 2 year fixed rate mortgage
07 June 2013 / by Isabel Buxton
In the current economic climate, the vast majority are feeling the pinch when it comes to living expenses – and for many of us, mortgage repayments are one of the biggest financial headaches.
Fixed rate mortgages can be a reassuring prospect for many homebuyers as they offer the security of stable rates for a set period. The highlight of the Post Office new range is their lowest ever 2 year fixed rate: 1.70% fixed until 31/08/2015 up to 60% LTV with a £1,995 arrangement fee. This rate is available to all borrowers, from first-time buyers to those looking to remortgage, and offers a maximum loan of £500,000.
Features of a Post Office mortgage
The Post Office offer a range of different mortgage products, and some of the features include:
– A dedicated case manager to help you with your application process
– UK-based call centres
– A decision in minutes when you apply online
– Mortgages provided in partnership with the Bank of Ireland UK
– A range of fixed rates available ranging from 60% to 90% LTV, as well as a wide range of tracker mortgages
Compare other fixed rate mortgage deals here >>
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Post Office Mortgage Deal Selection – Call Direct
|
Provider
|
Type
|
Initial Interest Rate
|
Initial Term
|
Max LTV* | Product Fee | |
|---|---|---|---|---|---|---|
 Call FREE on 0808 178 6813 |
Fixed |
2.47% Reverts to 4.74% |
5 Years |
75% |
No | More Info > |
| Early redemption charges may apply. Overall Cost for Comparison 3.70% APRC. This is the cost of the mortgage over the full term. | ||||||
Call FREE on 0808 178 6813 |
Lifetime Tracker |
4.74% |
Lifetime of the mortgage |
90% |
No | More Info > |
| Early redemption charges may apply. Overall Cost for Comparison 4.90% APRC. This is the cost of the mortgage over the full term. | ||||||
Representative Example:
A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.
The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).
In this example the overall cost for comparison is 3.7% APRC representative.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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