The Post Office has introduced its lowest ever two, three and five year fixed rate mortgages.

This includes its lowest ever two-year fixed rate deal available at 2.35% at 60% LTV.

It is also cutting rates on a number of its fixed rate products. The largest cut is to its two year fixed rate at 90% LTV by 1.24 percentage points – from 5.59% to 4.35%. This product has a £995 arrangement fee.

The new mortgages are as follows:

• Two year fixed rate (£1,495 fee) at 2.35% (60% LTV) – Post Office’s lowest ever two year fix
• Two year fixed rate (£995 fee) at 2.69% (75% LTV)
• Three year fixed rate (£1,495 fee) at 2.75% (60% LTV) – Post Office’s lowest ever three year fix
• Three year fixed rate (£995 fee) at 2.99% (75% LTV)
• Three year fixed rate (no arrangement fee) at 3.25% (75% LTV) – best in market with no fee
• Three year (£995 fee) fixed at 4.59% (90% LTV)
• Five year (£1,495 fee) fixed rate at 2.89% (60% LTV) – Post Office’s lowest ever five year fix
• Five year (£995 fee) fixed rate at 3.09% (60% LTV)
• Five year (£995 fee) fixed at 3.19% (75% LTV)

The number of ‘fee saver’ products have been expanded across two, three and five year fixed rates. The Post Office now offers 12 products with no arrangement fee or booking fee. Eight of these also have free standard valuation and free standard legal fees for those applying to remortgage.

The new products with no fees are:

• Two year fixed rate (fee free) at 3.99% (80% LTV)
• Three year fixed rate (fee free) at 3.49% (60% LTV)
• Five year fixed rate (fee free) at 3.59% (60% LTV)

John Willcock, head of Post Office Mortgages, said: “These mortgage rates are among the best and most competitive deals available in the market. Our commitment to our customers is fundamental to us and this is reflected in the service and rates we are able to offer which appeal to all types of borrowers, whether they are a first time buyer with a small deposit, a mover or a remortgage customer with more equity, we have fantastic deals suited to them.

“The huge reduction we have made to the rate on our two year fixed rate (4.35% from 5.59%), requiring just a 10% deposit, is very first time buyer-friendly and will provide a helping hand for those looking to step on the property ladder. For those with a bigger deposit and looking to fix for a longer period, a five year fixed rate mortgage well under 3% also provides great value. We constantly review our mortgage range to ensure our customers always receive the best possible value along with great service.”