The Post Office has sliced its mortgage rates and commenced a new market-leading two-year flat -rate agreement.

The group has slashed rates athwart its series of rigid -rate, chaser and buy-to-let mortgages, plummeting the interest it takes by up to 0.8%.

It has also commenced a new two-year preset -rate loan of 2.85%, for the one who borrows up to 65% of their home's worth and paying a £1,495 deal fee, placing it at the top of the optimum buy tables.

However the slash finished by the Post Office has not been mirrored in the wider mortgage souk that has stayed mainly motionless ever since the commencement of July.

The normal interest rate implied on a two-year flat-rate contract is presently at 4.5%, only 0.01% minor than at the commencement of July, whilst the rates on five-year flat-rate mortgages have dwindled by just 0.04% to 5.56% throughout the similar period, as per the financial information group Moneyfacts. co. uk.