Post Office Mortgages

[Smartflea]

Hello!

I'm considering applying for a Post Office mortgage as they look to have some of the best rates around for my circumstances (15-20% deposit, looking for a fixed rate 2-5 years). Does anyone have any experiences to share or general wisdom about this lender? TIA

[SpectrumFX]

Hello!

I'm considering applying for a Post Office mortgage as they look to have some of the best rates around for my circumstances (15-20% deposit, looking for a fixed rate 2-5 years). Does anyone have any experiences to share or general wisdom about this lender? TIA

The Post Office are just acting as a front for the Bank of Ireland.

The fees are a bit high because they need to pay the Post Office for fronting the mortgage, and while they don't charge a higher lending charge, they do take out insurance against you defaulting, so need to recover the costs of that in the fee. Having said that the rates look ok.

I applied for a mortgage with them with no problems, but that was a while back, and I don't know how their deals compare to what else is out there at the moment. Your best bet is to speak to a mortgage broker (they have access to some deals that the public can't access directly), or if you don't want to do that check out the FSA comparison tables. (click on the "compare mortgages" link here http://www.moneymadeclear.org.uk/tables)

Edit to add; Almost forgot to say, don't buy a house, prices collapsing, terrible investment decision, currently at the peak of the bull trap / dead cat bounce etc. etc.

Edited July 14, 2010 by SpectrumFX

[pissedbob]

They were offering some table-topping fixed rates earlier this year, and even then with supposedly "high demand" the process was extremely quick from application to mortgage offer. The online application process was a piece of cake, although I found it a bit strange that even in this day and age nobody asked for proof of income at any stage...

Having said that, I don't intend to take up their offer as my purchase has been delayed and I took the opportunity to get a substantially cheaper 5-year fix from the Britannia. I do have the advantage of being able to put down 25%, so your options may be bit more limited.

Don't bother with a mortgage adviser if you are already sure of what you can afford, what kind of deal you want and have an idea of what a competitive rate looks like. They won't tell you anything you can't find on the internet, and indeed many "apply direct" deals are better than anything an adviser can offer (since the adviser needs paying in the form of commission....)

[Smartflea]

Thanks The decision to buy or continue waiting is by no means finalised, but if the price I want can be achieved... then now suits my personal circumstances very well.