Post Office reveals Help to Buy mortage rates

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Post Office the latest lender to offer 95% loan-to-value mortgages as part of Government's Help to Buy scheme.

The Post Office has confirmed details of its Help to Buy mortgages.

The lender announced at the start of the year that it would be joining the Government's scheme, which sees borrowers able to access homeloans even if they only have a 5% deposit.

Two mortgages are on offer, neither of which comes with any arrangement fees.

The two-year fixed deal comes with a rate of 4.95%, while the five-year fixed deal has a rate of 5.35%.

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How Help to Buy works

Help to Buy is comprised of two different schemes. These mortgages are available as part of the Help to Buy: mortgage guarantee scheme.

A deposit of 5% is needed to take on a mortgage, while the lender offers to lend 95% of the remaining value of a property. The Government acts as a 'guarantor' on the mortgage, meaning that they will step in to compensate the lender if you default on payments and your property is repossessed.

To learn more about both parts of Help to Buy, read Help to Buy scheme explained.

Compare mortgage rates

See how the Post Office's two-year fixed rate deal compares to other lenders' Help to Buy rates:
LenderInitial interest rateFeeMore information

Norwich & Peterborough Building Society

4.79%

£845

Go to our mortgage centre

HSBC

4.79%

£99

Call 0808 115 8734

Post Office4.95%£0Available in branches

Norwich & Peterborough Building Society

4.99%

£0

Go to our mortgage centre

Royal Bank of Scotland

4.99%

£0

Go to our mortgage centre

NatWest

4.99%

£0

Go to our mortgage centre




As you can see, when it comes to fee-free deals, the new two-year Post Office Help to Buy mortgage comes with the lowest rate around. However, if you are happy to stump up a fee - even one as low as £99 - you could cut that rate down further.

What about the five-year deal?
LenderInitial interest rateFeeMore information

Norwich & Peterborough Building Society

5.09%

£845

Go to our mortgage centre

HSBC

5.19%

£99

Call 0808 115 8734

Norwich & Peterborough Building Society

5.29%

£0

Go to our mortgage centre

Post Office5.35%£0Available in branches
Virgin Money5.49%£99Call 0845 805 4739
Royal Bank of Scotland5.49%£0Go to our mortgage centre
NatWest5.49%£0Go to our mortgage centre


So again Post Office performs pretty well, though there is a superior fee-free mortgage on offer from Norwich & Peterborough Building Society.

This article aims to give information, not advice. Always do your own research and/or seek out advice from a regulated broker, before acting on anything contained in this article.

Your home or property may be repossessed if you do not keep up repayments on your mortgage.

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