The Post Office has reduced the cost of a range of its mortgage deals and now offers the lowest two- and four-year fixed rates available, and a 90% loan-to-value five-year fixed rate at 4.45%.

The lender is offering a two-year fixed rate mortgage charged at 2.38%, available up to 80% loan-to-value (LTV). This comes with an arrangement fee of £995.

It also offers a two-year fix at 2.89%, available up to 85% LTV, with a £995 arrangement fee.

The Post Office’s other deals include a three-year fixed rate charged at 2.74% up to 80% LTV with a £1,495 fee; a four-year fix at 3.39% up to 80% LTV with a £995 fee; a four-year fix at 3.75p% up to 85% LTV with a £995 fee, and five-year fixed rate mortgage at 4.45%, available up to 90% with a £995 fee.

John Willcock, head of Post Office mortgages, said:

“Our five-year fixed rate mortgage at 4.45% (90% LTV) is ideal for first-time buyers. Getting a foot on the first rung of the housing ladder can be a real struggle and saving for a deposit is often the biggest hurdle, deals that require a smaller deposit can go some way to easing the financial strain.”