Post Office Money unveils best-buy mortgages at 2.24pc - without fees

The challenger bank, known as Post Office Money, now offers a two year fixed rate mortgage at 2.23pc for those with a 15pc deposit, with no fees and free valuation.

The fee-free rate would cost a buyer borrowing £300,000, £1,305 a month, beating the closest competitor, Yorkshire Building Society’s two year fix at 2.29pc with £250 cashback, by around £10 a month.

The Post Office continues to offer the cheapest fee-free Help to Buy mortgage at 3.68pc, with the Help to Buy rate’s closest competitors having large fees of £1,000 or more.

The lender also announced a market-leading three-year fixed rate of 2.67pc for those with 10pc deposits - but with a relatively high mortgage fee of £1,495.

Similarly, a five-year fix at 2.73pc is now available with a 15pc deposit, also the best rate, has the same high fee, as does a three-year fix at 1.98pc.

John Willcock, head of Post Office Money mortgages, said: “Our new market-leading mortgage deals are evidence that we are committed to supporting all buyers – from those looking to purchase their first home through to those taking their second and third steps.

“In particular we know that first-time buyers often need a helping hand, and our great rates at higher LTVs, plus our fee free options, offer just that.”