"Adding a seven-year fixed rate for the first time allows us to give customers a wider range of choice and allowing them to take advantage of historic low interest rates."
As part of its new range, the Post Office has also launched new 85% LTV rates including a three-year fixed rate at 2.16% and a five-year fixed rate at 2.49%.
The new range also introduces reduced Help to Buy rates, and new deals for buy-to-let customers.
New cashback deals for first-time buyers at 90% LTV include a two-year fixed rate at 2.69%, three-year fixed rate at 2.84% and a five-year fixed rate at 3.28%.
John Willcock, Head of Post Office Money Mortgages, said: “We are continuing to improve our mortgage offering across the board and adding a seven-year fixed rate for the first time allows us to give customers a wider range of choice and allowing them to take advantage of historic low interest rates.
“As strong supporters of the Help to Buy scheme, we are also pleased to be able to cut rates for those striving to get onto the property ladder. From our own research we understand the difficulty first-time buyers are facing, with 40% (8.5 million) of those currently renting not believing they will ever be able to buy their own property we are keen to provide support where we can.”
