Review of Post Office Mortgage Products

Why choose a Post Office Product?

The Post Office has been around for literally hundreds of years, and as a trusted household name is able to offer its customers products that give value for money. Customers can get a Post Office mortgage with just a 10% deposit, providing they meet all the lending criteria. It's easy to apply online, and they have both an affordability calculator, and a repayment calculator on their website so that you can see how payments will fit into your monthly budget. They won a Best Online Mortgage Lender award in 2009-2010, and their mortgages are supplied by the Bank of Ireland.

All their products currently offer a free standard valuation for mortgages and re-mortgages. There are no legal fees if you are re-mortgaging. You can have their arrangement fees added to the loan.

If you are looking to secure a new mortgage then it is best to apply early, so get the paper work underway a good 8-12 weeks before you will need it.

Get a quote now...you could have Approval in Principle in just 30 minutes

It is very easy to get quote from the Post Office. You can either complete an application form online, or you can call them, or request that somebody calls you back.

Information you need for your application form:

1. Employment details

2. Bank account details

3. Previous addresses for the last three years

4. Tax office details (these are on your P60)

5. National insurance number

6. Details of any loans or credit card debts

7. Information on your new home

Best current deals include:

Buyers with a 10% minimum deposit

· 2 years fixed for 5.69%

· Base rate tracker for 4.99% for the duration of the mortgage

· 2 year tracker for 4.69%

All these have a £995 arrangement fee

Buyers with a 15% minimum deposit

· 2 years fixed for 3.94%

· Base rate tracker for 3.99% for the duration of the mortgage

· 2 year tracker for 3.65%

All these have a £995 arrangement fee

Buyers with a 20% minimum deposit

· 2 years fixed for 3.45%

· Base rate tracker for 3.39% for the duration of the mortgage

· 2 year tracker for 2.99%

All these have a £995 arrangement fee

Buyers with 25% minimum deposit

· 2 years fixed for 3.19%

· Base rate tracker for 2.99% for the duration of the mortgage

· 2 year tracker for 2.79%

The above have a £995 arrangement fee

· Buy to let 2 years fixed for 5.45%

· Buy to let base rate tracker for 4.99%

The above have a £1495 arrangement fee

Buyers with 35% minimum deposit

· 2 years fixed for 2.79%

· Buy to let 2 year fixed for 4.78%

These both have a £1495 arrangement fee

Mortgages explained:

· Fixed Rate Mortgages: You can choose to lock your mortgage interest rate for a set amount of time. The advantage of this is you know exactly how much you have to pay every month. Interest rates can rise but your repayment will be the same, however if rates fall then your repayments will not drop.

· Tracker Mortgages: Your mortgage rate will vary as it tracks the Bank of England Base Rate, and may go up or down.

· Buy to let mortgages:The mortgage can be fixed or variable rate, and for up to 75% of the property's value.

There are two ways of repaying your Post Office mortgage which are:

· Repayment mortgage, where you pay off the capital and interest every month, and are guaranteed to have paid off the loan by the end of the term.

· Interest-only mortgage,where you only pay the interest every month. The repayments are lower, but you need to think about how you will pay off the capital at the end of the mortgage.

If you are a first time buyer you need to:

· Work out how much you can comfortably afford, and decide which kind of mortgage is right for you.

· Make sure you check all the small print so you know about any early repayment fees and higher lending charges.

· As a general rule of thumb, you should be able to borrow up to four and a half times your income.

· If you have a bigger deposit then you will get a better deal on your mortgage.

· It's important to take all the extra costs of buying a home into consideration too. This includes stamp duty, solicitor's fees and the valuation fees.

· You must have buildings insurance on your new home before you can exchange contracts, and you can get a quote from the Post Office.

All of the Post Office standard mortgages are available for first-time buyers. Their arrangement fee can even be added onto the loan, but it makes better sense if you have enough money in your savings to pay for this upfront.

Re-mortgaging your home with the Post Office:

If you are coming to the end of your current mortgage deal then you may wish to look around for a better deal, or you may want to release some of the capital from your home.

Important things to think about when re-mortgaging are the costs. It could be that your current mortgage provider might impose an early repayment charge or redemption penalty. There are also administration fees and any arrangement fees and legal fees to take into consideration.

Re-mortgaging your home can be the ideal opportunity to get your perfect mortgage. It's worth thinking about the benefits that you like about your current mortgage and what benefits you'd like to see with your future mortgage. It could be that you'd enjoy more flexibility with your mortgage and would like to make extra payments or to take mortgage holidays every so often.