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Loan claim: Post Office reduces mortgage rates

The Post Office is now offering consumers the best mortgage rates on the market.

It has cut rates on many of its products, making three of them the best available for consumers. These are two two-year fixed rate mortgages with no arrangement fee with interest at 3.19 per cent and 3.49 per cent, while the other is a five-year fixed rate mortgage at 2.85 per cent if its fee comes below £995.

Speaking about the change in interest rates, head of Post Office mortgages John Willcock explained: "Buyers are hungry for a good deal and our new rates offer some of the most competitive in the market."

This shows that the Post Office is growing in prominence as a competitor to the retail financial sector at a time when the government is trying to encourage banks to offer better deals.

Earlier this year the Post Office also launched a current account, which was the first sign that it was trying to enter the financial sector this year.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.ADNFCR-2776-ID-801596387-ADNFCR

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