Qualified advisers answering your
Financial Questions
call 0800 092 1245

Post Office beefs up mortgage operation

The Post Office has introduced a total revamp of its mortgage operation which has seen the introduction of a base rate tracker, two and three-year fixed-rate deals and a five-year mortgage agreement which has topped the best buy league. The five-year deal is fixed at 5.09% although it only offers 60% loan to value and comes with a rather hefty £599 arrangement fee.

At a time when the UK mortgage market is struggling to regain the competitive nature we saw just two years ago it is interesting to see the Post Office revamp its mortgage arrangements and come out fighting. However, it is still a little disappointing to see that the better mortgage arrangements are only available on a 60% loan to value basis which effectively cuts out first-time buyers from the picture. It is first-time buyers who are the lifeblood of the UK property market, allowing those who acquired property years before to sell up and move on.

It is hoped that the increasing competition supplied by the Post Office will at least encourage other mortgage providers to match or at least improve their rates in the short to medium term. The UK economy needs a buoyant and competitive mortgage market to increase liquidity, keep rates low and allow the UK property market to recover.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details