The Post Office is launching two new direct-only mortgages including a five-year fixed rate of 2.74 per cent at 60 per cent LTV today.
Borrowers will also have access to a five-year fixed rate of 4.55 per cent up to 90 per cent LTV, with no fee.
Rates are being cut on a number of existing mortgages. The rate on the two-year fix up to 90 per cent LTV is being cut by 0.6 per cent, from 4.35 per cent to 3.75 per cent.
The rate on the three-year fix up to 75 per cent LTV is being cut by 0.31 per cent, from 2.99 per cent to 2.68 per cent.
Post Office head of mortgages John Willcock says: “These mortgage rates are among the most competitive deals available in the market. We are committed to helping as many borrowers as possible find an affordable mortgage that meets their needs.”