The Post Office announced this week that they would offer some of the best mortgage rates so far seen in 2012, and it is true that some of their products are sitting at the top of the best deals for the year. The lending provider announced that they will cut 1.01% off their entire variable and fixed mortgages with the rate change effective immediately. Therefore, many of their loans are now much more affordable and something to take a second look at for those who want to remortgage with a good rate.

The top product to take a look into is the five year fixed mortgages that are now set at 3.38%, making it one of the top deals on the market for those who want the security of a five year fixed rate. Attached to the mortgage is a £995 fee, but when you take a look at the mortgage rate the fee is almost a drop in the hat, especially when you consider the fact that as many banks keep increasing their rates the new five year fix is almost the same as most banks’ two year fixed products.

In order to take advantage of the deal remortgages or new home buyers must come up with a 75%LTV. Those who are looking to get their foot onto the housing market for the first time may want to take a look at the two-year fixed mortgage that comes with the low rate of 2.73% although home owners must come up with a 65% LTV.

For this reason, those seeking to remortgage their home in order to get a lower monthly mortgage rate will most likely be the group that takes advantage of it.  There is also a three year product set slightly higher at 2.95%.  These mortgage products also have an attached £995 fee.

Head of Post Office mortgage division, Mike Cook, said that they are happy that they have been able to drop their mortgage rates while expanding the range of products they can offer consumers. Those who do not have the ability to meet a high deposit should also check out the two year fixed products that come with a high 80% LTV and the low rates of 3.29% or a three year fix at 3.89% that only requires an 85% LTV.  Tracker products are also available at a variety of different rates.