The Post Office is reducing its rates by up to 0.40 percentage points on a number of its fixed rate mortgages.

It is also reducing or removing arrangement fees on certain deals.

The largest reduction is to its five year fixed rate at 75% LTV – from 3.99% to 3.59%.

The £1,495 arrangement fee on this product has also been removed.

Many deals with arrangement fees of up to £1,495 have the fee reduced or removed, with free standard legal work and a standard valuation offered across some products.

The following products have arrangement fees removed entirely include:

Two year fixed rate (no fee) at 3.65% (75% LTV)
Three year fixed rate (no fee) at 3.79% (75% LTV) includes valuation and standard legal work
Five year fixed rate (no fee) at 3.59% (75% LTV)
Five year fixed rate (no fee) at 4.09% (75% LTV) includes valuation and standard legal work

“We constantly review our mortgage range to ensure we are offering customers choice and value for money,” said Mike Cook, head of Post Office Mortgages.

“Many recent headline-grabbing rates have large booking or arrangement fees, and require a much larger deposit. Our new range means many customers with 25% deposit or less can benefit from great fixed rates with no arrangement fee, and some with valuation and legal fees included too.

“These deals will particularly help remortgage customers reduce their monthly payments without having to pay upfront fees.”