The Post Office has decided to enter the mainstream mortgage market, with their home loans becoming available across the county, according to a report from Telegraph.co.uk. Previously only available in certain areas due to being part of a pilot project, the mortgages offer one of the lowest standard variable rates (SVRs).
The company has said that information on the mortgages is now available at all 12,000 Post Office branches, with over 250 larger branches having staff who will help customers with any information regarding the mortgages. Customers can also arrange to have a call back from a Post Office mortgage specialist.
Among the home loans available are two five-year fixed rate mortgages. One is for people borrowing up to 60 per cent of the property value and charges 5.09 per cent; the other is for 80 per cent loans at a rate of 5.75 per cent.
A two-year fixed rate mortgage at 4.29 per cent and a 4.59 per cent three-year fixed rate mortgage (both for 60 per cent loans), and a two-year tracker currently charging 5.59 per cent have been described by David Black of Defaqto ? the researcher ? as ?reasonably competitive but can be beaten elsewhere?.
There were home loans that weren?t competitive, according to Mr Black, which were the two-year and three-year fixes (6.29 per cent and 5.89 per cent) for 80 per cent of the property value. There is a fee of ?599 in all cases.
Borrowers will have to pay the Post Office?s SVR of 2.49 per cent after the introductory offer expires. Only Direct Line?s mortgages beat this offer with their SVR of 2 per cent.
Az Alibhai, head of lending for the Post Office, said: ?Home buyers across the UK can now take advantage of the Post Office?s range of competitive mortgages, available through our unrivalled branch network, online and by phone. What?s more, as our revert rate is currently the best in the market and tied to the base rate, customers on fixed rate deals won?t be in for any nasty surprises once their initial rate period ends and can expect good long-term value.?
The Post Offices buy-to-let mortgages will continue to be available.
