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Post Office Announces New Mortgage Product Range Available Through Brokers

Press Release   •   May 29, 2014 15:19 BST

The Post Office will launch its highly competitive range of mortgages along with its financial services partner, Bank of Ireland UK, on Monday, 2nd June.

The range is available initially through the Legal and General Mortgage Club Appointed Representatives, and will cater to the needs of first time buyers or those looking to move. The highly competitive rates start from 1.98% for a 2-year fixed and from 3.15% for a 5-year fixed, both carrying a £995 fee and available to 75% LTV.

For those looking to remortgage, the Post Office will offer a 2-year fixed at 2.58% or a 5-year fixed at 3.38% both of which come without product arrangement or value fee and will have legal fees paid by the lender.

First time buyers will also benefit from this new range with a higher LTV offering of a 3.79% 2-year fixed up to 90% LTV with a fee of £495. Longer term rates at 4.55% for a 3-year fixed and 4.95% for a 5 year fixed are also available both without product or valuation fees.

Buy to let products will also feature with a 2-year fixed from 3.15% with LTVs of 60% and 75%. All product details can be found at www.postoffice4intermediaries.co.uk (from 10am on 2nd June).

John Willcock Head of Mortgages at Post Office said: “Buying a house is a big decision, and we recognise the importance of offering customers a choice in how they do this. Post Office’s competitive mortgages can be accessed through a number of channels, be it online, in branch or through a broker. We are continuing our journey of becoming one of the top ten providers of mortgages in the market by offering a great range of deals for potential homebuyers, whatever their situation.”

Alison Pallett Mortgage Product Director at Bank of Ireland commented: “This new product range launching on Monday 2nd June demonstrates our intention to be a serious contender in the mortgage market. We’re working hard to build a strong product proposition backed by our reliable and consistent online service offering.”

Jeremy Duncombe, director, Legal & General Mortgage Club, commented: ”It is great to see this exclusive distribution agreement launch with a range of excellent products. It is a broad range, covering purchase, remortgage, first time buyer and Buy to Let and all offer great flexibility to the customer. The products are very competitive, and we expect them to create good demand from our members.”

Ends

For more information, please contact:
Carmel McCarthy
Post Office Press Office
Tel: 020 7 250 2268
Mob: 07717 294529
carmel.mccarthy@postoffice.co.uk
Twitter @postofficenews
@postofficenews

FULL DETAILS OF MORTGAGES

Term

Rate

Description

Overall Cost for Comparison

LTV

Arrangement Fee

Features

ERCs

Residential

2 year

1.98%
fixed

until 31/08/2016 then 4.49% variable
which is Bank of England Base Rate plus 3.99%
for the rest of the mortgage term

4.2% APR

75%

£995

No Higher Lending Charge

3% of the sum repaid
until 31/08/16

5 year

3.15%

until 31/08/2019 then 4.49% variable
which is Bank of England Base Rate plus 3.99%
for the rest of the mortgage term

4.1% APR

75%

£995

No Higher Lending Charge

5% of the sum repaid
until 31/08/19

2 year

2.58%
fixed

until 31/08/2016 then 4.49% variable
which is Bank of England Base Rate plus 3.99%
for the rest of the mortgage term

4.2% APR

75%

£0

No Higher Lending Charge
Standard legal fees paid
by Lender (for remortgagers only)
Standard Valuation Fee paid by Lender

3% of the sum repaid
until 31/08/16

5 year

3.38%
fixed

until 31/08/2019 then 4.49% variable
which is Bank of England Base Rate plus 3.99%
for the rest of the mortgage term

4.1% APR

75%

£0

No Higher Lending Charge
Standard legal fees paid
by Lender (for remortgagers only)
Standard Valuation Fee paid by Lender

5% of the sum repaid
until 31/08/19

2 year

3.79%
fixed

until 31/08/2016 then 4.49% variable
which is Bank of England Base Rate plus 3.99%
for the rest of the mortgage term

4.5% APR

90%

£495

Higher Lending Charge paid by Lender

3% of the sum repaid
until 31/08/16

3 year

4.55%
fixed

until 31/08/2017 then 4.49% variable
which is Bank of England Base Rate plus 3.99%
for the rest of the mortgage term

4.6% APR

90%

£0

Higher Lending Charge paid by Lender
Standard legal fees paid
by Lender

(for remortgagers only)
Standard Valuation Fee paid by Lender

3% of the sum repaid
until 31/08/17

5 year

4.95%
fixed

until 31/08/2019 then 4.49% variable
which is Bank of England Base Rate plus 3.99%
for the rest of the mortgage term

4.8% APR

90%

£0

Higher Lending Charge paid by Lender
Standard legal fees paid
by Lender (for remortgagers only)
Standard Valuation Fee paid by Lender

5% of the sum repaid
until 31/08/19

Buy to Let

2 year

3.15%
fixed

until 31/08/2016 then 4.99% variable
which is Bank of England Base Rate plus 4.49%
for the rest of the mortgage term

4.9% APR

60%

£1,995

No Higher Lending Charge
Minimum Loan £80,000

5% of the sum repaid
until 31/08/16

2 year

3.35%
fixed

until 31/08/2016 then 4.99% variable
which is Bank of England Base Rate plus 4.49%
for the rest of the mortgage term

5.0% APR

75%

£1,995

No Higher Lending Charge
Minimum Loan £80,000

5% of the sum repaid
until 31/08/16

About the Post Office

About 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 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 18million customers a week and a third of small businesses. 99.7% of the total population live within three miles of a post office. 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

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 and the leading supplier of foreign exchange in the marketplace.

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 2013 Bank of Ireland (UK) plc had a loan to deposit ratio of 86% with customer deposits of £20.9 billion utilised to fund net customer lending of £17.9 billion (primarily comprising £13 billion of UK residential mortgages). Bank of Ireland UK received the explicit support of the current Coalition Government for its continued partnership with the Post Office and in August 2012, all parties to the relationship agreed to an extension of the contract to a minimum of 2023.

*** https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/31809/10-1260-securing-the-post-office-network.pdf



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.