The Post Office has revealed the details of its mortgage offers in regards to the Help to Buy scheme, which it previously announced it will be joining.
There are two mortgages available through the Post Office under the scheme, both of which require deposits as low as 5%. Neither of the mortgages comes with any arrangements fees either.
There is a two year fixed rate option, or a 5 year fixed rate mortgage, with rates of 4.95% and 5.35% respectively.
The mortgage terms are restricted to a minimum of 10 years (although shorter terms may be “considered by exception where [they] are satisfied that ability to pass exists”) and a maximum of 35 years.
To compare, other lender’s Help to Buy rates are reportedly at 4.79% with a £99 setup fee (HSBC), 4.79% with a £845 setup fee (Norwich and Peterborough Building Society) and 4.99% with no setup fees (Royal Bank of Scotland and Natwest) so the Post Office is offering reasonably competitive rates.