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Post Office mortgage 1.37% fixed for 2 years with £1,995 fee (good for mortgages > £300K, 60% LTV)
Post Office mortgage 1.37% fixed for 2 years with £1,995 fee (good for mortgages > £300K, 60% LTV)

Post Office mortgage 1.37% fixed for 2 years with £1,995 fee (good for mortgages > £300K, 60% LTV)

If you're in the fortunate position of being able to afford a mortgage over £300,000 and have at least a 40% deposit, then the Post Office are offering a 2-year fixed deal at an initial rate of just 1.37%!

Comes with an arrangement fee of £1,995 and a lending fee of £195 - payment of the latter can be deferred until your mortgage is fully repaid.

WHY £300,000?
That's approximately the figure that an online mortgage calculator tool shows is the minimum necessary to end up cheaper than the 1.99% no fee deal that's currently ultra-hot. The larger the mortgage, the more the saving. At the extreme top end (£1,000,000 which is the Post Office limit) you would save nearly £6,000 during the 2-year fixed period by selecting this 1.37% rate and paying the arrangement fee vs going for the fee-free 1.99% rate.

11 Comments

Original Poster

Here's the mortgage calculator I referred to so that you can test your own scenarios...
thisismoney.co.uk/mon…tml

Already listed........................ like 50 times.

Excellent. The other post office mortgage deal gets some heat so now every single mortgage product available on their website will be posted individually.

Original Poster

Mada06

Excellent. The other post office mortgage deal gets some heat so now … Excellent. The other post office mortgage deal gets some heat so now every single mortgage product available on their website will be posted individually.



From experience of talking to friends, quite a lot of people don't really appreciate the full nuance of a lower %, higher arrangement fee mortgage vs a higher %, zero fee mortgage. I highlighted the most extreme case to show what's possible.

If this thread does nothing more than prompt somebody to ask "Wouldn't it be cheaper if..." when they're discussing their options with a mortgage advisor, it's already proved useful surely?

Edited by: "Genki" 19th Dec 2014

"If you're in the fortunate position of being able to afford a mortgage over £300,000 and have at least a 40% deposit..." you probably don't need to spend much time on HUKD

Original Poster

SFJnet

"If you're in the fortunate position of being able to afford a mortgage … "If you're in the fortunate position of being able to afford a mortgage over £300,000 and have at least a 40% deposit..." you probably don't need to spend much time on HUKD



Touché!

Booooooooooooooooo.

Genki

If you're in the fortunate position of being able to afford a mortgage … If you're in the fortunate position of being able to afford a mortgage over £300,000 and have at least a 40% deposit, then the Post Office are offering a 2-year fixed deal at an initial rate of just 1.37%!Comes with an arrangement fee of £1,995 and a lending fee of £195 - payment of the latter can be deferred until your mortgage is fully repaid.WHY £300,000?That's approximately the figure that an online mortgage calculator tool shows is the minimum necessary to end up cheaper than the 1.99% no fee deal that's currently ultra-hot. The larger the mortgage, the more the saving. At the extreme top end (£1,000,000 which is the Post Office limit) you would save nearly £6,000 during the 2-year fixed period by selecting this 1.37% rate and paying the arrangement fee vs going for the fee-free 1.99% rate.



And dont forget you'll also need to pay for your conveyancing fee's even with a re-morgage, on a morgage over £300,000 this would probably ammount to at least £400

SFJnet

"If you're in the fortunate position of being able to afford a mortgage … "If you're in the fortunate position of being able to afford a mortgage over £300,000 and have at least a 40% deposit..." you probably don't need to spend much time on HUKD


Agreed. You would have to be looking at a house price in excess of £500,000 and have an income of at least £80,000 or more and a deposit of £200,000. Hmm...a headteacher, or a GP perhaps? Surely they wouldn't be wasting valuable time on HUKD? oO
Edited by: "pasheast" 19th Dec 2014

pasheast

[quote=SFJnet] "If you're in the fortunate position of being able to … [quote=SFJnet] "If you're in the fortunate position of being able to afford a mortgage over £300,000 and have at least a 40% deposit..." you probably don't need to spend much time on HUKD


Agreed. You would have to be looking at a house price in excess of £500,000 and have an income of at least £80,000 or more and a deposit of £200,000. Hmm...a headteacher, or a GP perhaps? Surely they wouldn't be wasting valuable time on HUKD? oO
[/q

Well I must stop looking on this site then,but I do like saving my Very hard earned money,rather its in my bank account than some retailers/bankers.

SFJnet

"If you're in the fortunate position of being able to afford a mortgage … "If you're in the fortunate position of being able to afford a mortgage over £300,000 and have at least a 40% deposit..." you probably don't need to spend much time on HUKD



Probably but im sure there are some people who have saved money on other things and got a high value house, also could be a couple on decent jobs with about £40,000 each which isn't that uncommon
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