Post Office slashes rates

The new rates and reduced fees will be available to customers direct-only from today.

The largest cut is to its 5-year fixed rate at 75% loan to value from 3.99% to 3.59%. The £1,495 arrangement fee on this product has also been removed.

Many of the Post Office's new deals see arrangement fees of up to £1,495 reduced or removed with free standard legal work and a standard valuation offered across some products.

The following products have arrangement fees removed entirely include:

Two year fixed rate (no fee) at 3.65% (75% LTV)

Three year fixed rate (no fee) at 3.79% (75% LTV) includes valuation and standard legal work

Five year fixed rate (no fee) at 3.59% (75% LTV)

Five year fixed rate (no fee) at 4.09% (75% LTV) includes valuation and standard legal work

Mike Cook, head of Post Office mortgages, said: "We constantly review our mortgage range to ensure we are offering customers choice and value for money. Many recent headline-grabbing rates have large booking or arrangement fees, and require a much larger deposit.

"Our new range means many customers with 25% deposit or less can benefit from great fixed rates with no arrangement fee, and some with valuation and legal fees included too. These deals will particularly help remortgage customers reduce their monthly payments without having to pay upfront fees."

These rate reductions come a day after the Post Office announced it was putting mortgage specialists into five of its larger branches in the UK.

Cook added: "This a very exciting time for Post Office Mortgages. As well as offering a new range of products we are currently in the process of launching our in-branch mortgage specialists. We understand that finding the right mortgage can be complex and our specially trained mortgage specialists can assist our customers through the process. This move is the next step in giving customers a genuine alternative to major high street banks."

Yesterday the Association of Mortgage Intermediaries criticised the term mortgage specialist saying customers were unlikely to realise they were not receiving advice and that the move was not in the spirit of current Mortgage Market Review proposals.