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Lowest ever mortgage rates from post office are best in market.

Press Release   •   Jul 10, 2013 23:00 BST

- Post Office shakes up the mortgage market with rate reductions on fixed-rate and tracker products
- Great news for customers as best rates mean best mortgage deals

The latest reductions in mortgage rates from the Post Office make it the best value in the market as it continues to offer the most competitive deals to customers.

A new two-year tracker mortgage has been introduced at 1.94% (£995 fee), while the two-year tracker mortgage with a £995 fee has seen its rate reduced from 2.89% to 2.19%.

The Post Office has been breaking new ground with its range of financial services products and is shaking up the sector with extremely competitive mortgage rates that continue to surge ahead at the top of best-buy tables.

- Two-year fixed rate (£995 fee) reduced from 2.28% to 2.19% (75% LTVThis stands for Loan to Value. It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation.) - best in market

- Three-year fixed rate (£995 fee) reduced from 2.45% to 2.38% (75% LTVThis stands for Loan to Value. It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation.) - best in market

- Two-year fixed rate (£995) fee reduced from 2.79% to 2.74% (80% LTVThis stands for Loan to Value. It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation.) - best in market

- Two-year tracker (no fee) reduced from 2.89% to 2.19% (75% LTVThis stands for Loan to Value. It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation.) - best in market

- NEW two-year tracker (£995) fee at 1.94% (60% LTVThis stands for Loan to Value. It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation.) - best in market

These products will be available to customers from 11 July.

John Willcock, Head of Post Office Mortgages, said: “The Post Office’s latest mortgage rates are our best ever and continue to offer a range of great value deals for potential homebuyers, whatever their situation. The rates on many of our products have been significantly reduced, while some are also fee-free. Buyers are on the lookout for good deals and our new rates are right at the top of the best-buy lists.

“The diversity of our range means whether you’re a first-time buyer or looking to move, the Post Office can offer you the deal that is best for you. We are a trusted organisation that is easy to do business with. The Post Office always puts customers first, we continue to strive to offer the best possible products to help them onto and up the property ladder.

“Our new two-year tracker mortgage at 1.94% (£995 fee) is yet another market-leading option in our financial services range. People want choice and our specialists are there to give friendly and knowledgeable advice for anyone trying to work out what is best for them.”

Customers can pick up information about the new mortgage range and rates online at postoffice.co.uk/mortgages or from one of over 11,500 Post Office branches across the UK. Customers can also arrange a call-back from a mortgage specialist at the call centre, via all branches, or call the Post Office directly on 0800Calls to 0800 numbers are normally free from UK landlines but charges may apply from mobile phones. Calls may be monitored or recorded for training and compliance purposes. 077 8033. Terms and conditions can be found at postoffice.co.uk.

In August 2012 Post Office introduced Mortgage Specialists to four of its larger branches in the UK, and a further three branches in November 2012. The Mortgage Specialists are able to discuss each individual’s needs and answer questions to help customers make an informed decision about the suitability of the products. In addition, the majority of customers will be able to get a decision in principle within minutes. First time buyers, those wishing to move, or customers looking to switch to a better deal will be able to book a free, no-obligation appointment in selected branches.

Post Office Limited has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of many communities across the country. The Post Office has made a commitment to no more branch closure programmes. It provides around 170 different services and products spanning financial services including savings, insurance, loans, mortgages and credit cards. Post Office also offers Government services; telephony; foreign currency; travel insurance and mail services.

It serves around 20 million customers a week and half of all small businesses. 93% of the total population live within one mile of a post office and 99.7% within three miles. For many rural communities the post office is the only retail outlet. Post offices remain highly valued and trusted and are the focal point for many communities. For more information, visit www.postoffice.co.uk

Post Office mortgages in 2012 have won the following awards from What Mortgage magazine – Best fixed Rate Provider and Best Online Lender for the third year, and recently have also received Best Online Lender from Your Mortgage for the fourth year running.

Post Office Mortgages are offered in partnership with Bank of Ireland UK. Bank of Ireland UK has been the exclusive partner to the Post Office for the provision of financial services and products since 2003. The partners’ venture has become one of the UK’s fastest growing financial service providers with almost three million customers and a savings book of £18 billion.

Bank of Ireland has supported customers in the UK for many decades. Bank of Ireland UK plc, is a wholly owned subsidiary of Bank of Ireland Group, separately incorporated and is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Activities related to the Post Office partnership are conducted within this entity and as such, all retail deposits up to £85,000 with the Post Office are protected under the UK’s Financial Services Compensation Scheme and ring-fenced in the UK. At 31 December 2012 Bank of Ireland (UK) plc had a loan to deposit ratio of 77% with customer deposits of £23.3 billion utilised to fund customer lending of £18 billion (primarily comprising £12.6 billion of UK residential mortgages). In November 2010, in the UK Government's report 'Securing the Post Office network in the digital age', Bank of Ireland UK received the explicit support of the Coalition Government for its continued partnership with the Post Office.

Contact - Carmel McCarthy

About the Post Office

The Post Office (Post Office Limited) has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of communities in Northern Ireland, Scotland, Wales and England. The Post Office has made a commitment to maintaining its network of branches at its current size and reach. It provides around 170 different products and services spanning financial services including savings, insurance, loans, mortgages and credit cards; Government services; telephony; foreign currency; travel insurance and mail services.

The Post Office serves over 17 million customers a week and a third of small businesses. Some 99.7% of the total population live within three miles of a post office and over 97% live with one mile of a post office. For many rural communities, the post office is the only retail outlet. Post Offices branches remain highly valued and trusted, and are the focal point of many communities. For more information, visit http://www.postoffice.co.uk/.

Please note the Press Office team can only deal with enquiries from the media.  Unfortunately they do not have access to customer information so can not help with customer enquiries.

If you have an enquiry regarding any Post Office product or service please visit postoffice.co.uk or call 0845Local call rates apply. Call costs may vary depending on your service provider. Calls may be monitored or recorded for training and compliance purposes. 611 2970.