A simples guide

Post Office Mortgages

The Post Office has long been a pillar of the community, but this British institution has branched out into the financial services sector and it now offers a range of mortgages to go along with their savings accounts.

It is important to make sure that you are getting the best value on your mortgage though, which is why we always recommend comparing products from multiple providers. You can do so in just a few minutes via our mortgage comparison service.


What are the benefits of the Post Office compared to a traditional bank?

The main difference between providers will be the terms and conditions of each mortgage. These are different for every lender so make sure you check them carefully before deciding who to take out your mortgage with.

It’s understandable that some people may be a little bit hesitant about choosing the Post Office rather than a bank for their mortgage, but the Post Office is an appointed representative of the Bank of Ireland so you have the security that they are backed by a bank.

When deciding on any large financial commitment it’s important that you take the time to consider which lender best suits you. In terms of managing your mortgage there should be little difference between the Post Office and having a mortgage with a bank. It’s all managed online and so there is just one simple rule, which is to make sure that you pay on time.

So once you’ve secured your mortgage, the only thing left to do is to sit back and enjoy your new home.

key for house

Fixed Rate vs Tracker: Which Post Office mortgage to go for?

A fixed rate mortgage offers the security of knowing exactly what your payments will be for the agreed time period, regardless of what happens to the Bank of England base interest rate.

Alternatively you can apply for a tracker mortgage which often means lower repayments to start with but this rate can rise or fall with the Bank of England base rate so your monthly payments could change.

What types of mortgage does the Post Office offer?

The Post Office’s mortgages cover the usual suspects from tracker and fixed-rate mortgages through to help to buy and buy to let deals.

The Post Office’s fixed rate mortgages are flexible to your circumstances and interest rates vary upon the deposit you provide, length of the mortgage and fee assistance options.

Tracker mortgages vary on the same criteria as a fixed-term in addition to the tracker rate in your policy. Based on information published 22nd February 2016, the initial tracker rate on a 10% deposit based mortgage was 4.49%.

Post Office buy to let mortgages offer varied interest rates dependent upon the initial deposit.:

  • 25% Deposit: 2.69% initial rate until 31st May 2018
  • 30% Deposit: 2.49% initial rate until 31st May 2018
  • 40% Deposit: 2.18% initial rate until 31st May 2018

The help to buy scheme that allows first-time buyers to take a 20% Government loan, add it to their 5% deposit and access 75% LTV schemes. If you do not qualify for a help to buy mortgage then you may need to start building some savings, as the Post Office insists on you having at least a 10% deposit.

Is a Post Office mortgage right for me?

The Post Office can be seen by some as an unusual candidate on your shortlist for a mortgage, however they are a strong contender. In order to get the right deal though, you should ensure that you have compared mortgage providers to get the deal that offers the best terms for you.

You can compare a whole range of leading mortgage providers via our mortgage comparison service in just a few quick clicks, which could potentially save you money on this significant investment.

All Post Office mortgage rate and deposit details are based on information provided on postoffice.co.uk data on 20 April 2016

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