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The Post Office

As part of the huge Royal Mail Group the Post office has been offering financial services such as insurance and mortgages since the late 1990's but has been operating savings accounts for over 50 years and is one of the longest established institutions in the UK. Whilst there are over 13,000 Post Office branches throughout the UK most of its mortgage products are sold via the telephone call centre or internet - the Post Office was winner of the 'Best on line Mortgage Lender 2009-10' Award from Your Mortgage.

The post office currently offers Fixed rate, Trackers and buy to let mortgages. You will not have to pay a higher lending charge with any of their products, you can move your mortgage to a new property without affecting the rates or terms and you are able to overpay by up to 10% each year.

You can take out a mortgage for between 10 and 35 years but this will depend upon your age at the time of application, you can borrow up to 90% of the property value and may often borrow 4.5 times your main income. You will not be able to purchase a property under the Right to Buy, shared ownership or shared equity schemes.

Mortgages are available for up to 90% Loan to Value (LTV) but in common with most other lenders you will pay a higher interest rate for this facility.

The Post Office Mortgage Products

Tracker mortgages: Your mortgage will track the Bank of England Base rate and therefore may rise and fall throughout the period of the mortgage term. You may be able to borrow 90% of the value of your home. Early repayment charges apply, you can have a free basic valuation and customers who are re-mortgaging may be able to have their legal fees paid.

Fixed rates: a fixed rate mortgage means that the interest rate is set for an agreed period of time. This means that if the Bank of England Base rate is raised your mortgage rate and repayments will remain the same. However, you need to keep in mind that if the variable rate falls, you could pay more for your mortgage during the fixed rate period. The Post Office offer 2, 3 or 5 year fixed rate agreements, at the end of this period you will switch to the Standard Variable Rate. You may borrow up to 90% of the value of your home but this will affect the interest rate you pay.

Buy to Let : You may borrow up to 75% LTV and will pay a fixed rate for 3 or 5 years, at the end of this period you will pay the Standard Variable Rate. Early re-payment charges will apply during the fixed rate period.

If you are interested in a mortgage quotation including those offered by the Post Office please complete our quick enquiry form.