Post Office launches new 90% mortgage dealsTwo and five-year fixed rates are best on market
12 May 2010
The Post Office is extending its mortgage range to include 90% deals available to first time buyers.
From tomorrow, the Post Office will be offering two-year, three-year and five-year fixed-rate mortgages to borrowers with just a 10% deposit. The rates for the two-year fixed and five-year fixed deal are the cheapest on the market but come with an arrangement fee of £999 and an admin fee of £195. For some scenarios, depending on how much you're borrowing, the deals will work out to be the cheapest on the market in terms of total cost.
The new range also includes a two-year, three-year and five-year fixed rate mortgage available to borrowers with a 15% deposit and all of these deals top the Best Buy tables in terms of overall cost based on a £200,000 property with a £170,000 mortgage.
Marco Hughes, Post Office director of lending said: 'Whilst there are existing 90% deals available, many remain out of reach for most borrowers because the rates are too high. Instead, we're offering more affordable rates that will allow more borrowers to take out a mortgage with a smaller deposit. This should particularly help first time buyers.'
No mortgage advice
Melanie Green, Principal Researcher at Which? said: 'These new deals are great news for first time buyers as they increase the choice of deals available with a 10% deposit and represent good value too. The major drawback is that the Post Office doesn't offer mortgage advice so borrowers will need to make up their own minds whether the mortgage is suitable for them or not'.
The Which? mortgage finder is an invaluable tool if you're looking for a mortgage. Enter your own details and it will find the cheapest deals available based on the total cost of the deal, taking into account any fees. If you're new to mortgages or just want a refresher on the different options available, take a look at our guides to mortgage basics and mortgage deals.
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