Post Office to offer 90% LTV mortgages - Mortgages - News - Moneyfacts


Post Office to offer 90% LTV mortgages

Post Office to offer 90% LTV mortgages

Category: Mortgages

Updated: 29/03/2010
First Published: 29/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A mortgage product aimed at first time buyers requiring just a 10% deposit is amongst the new financial products that the Post Office will soon be offering, the Government has confirmed.

As part of a drive to put banking back into the heart of communities, the Business Secretary, Lord Mandelson, said the number of financial services offered by the Post Office would start to expand over the coming year.

The 90% loan to value mortgage is part of the government's plans to increase substantially the amount that the Post Office lends – the overall aim is to double the value of its mortgage book in the coming tax year.

Amongst the other products set to be introduced is a weekly budgeting account, designed to help people on low incomes manage their household budgets and save money by taking advantage of the discounts for using direct debit to pay their utility bills.

A children's savings account is pencilled in to be launched within the next twelve months, while a current account that will be accessible from any Post Office in the country is also in the pipeline.

A Saving Gateway account for people of working age who are on lower incomes is already due to be launched this year. Aimed at kick-starting the savings habit, the Government will add 50p for every £1 saved.

It was also confirmed that negotiations are taking place with Royal Bank of Scotland and Santander to give access to their current accounts via the Post Office's network of 11,500 branches.

"The Post Office can provide a range of good value, simple financial products for everyone," said Business Minister, Pat McFadden. "These are the clear messages that people have given us and we are acting on them - a major step towards making the Post Office a sustainable neighbourhood banking service."

Find the best mortgage for you - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Londoners could be saving for a century to buy

We all know how expensive property can be in London and how tricky it is to get on the ladder, but the figures could still come as a shock, with a study finding it could take more than a century for the typical Londoner to save a deposit.

85% of remortgagors benefit from lower rates

Mortgage rates are among the lowest ever recorded, and in the case of fixed rates, they just keep falling! This means it’s never been cheaper to fix your mortgage rate for the long term, and unsurprisingly, remortgagors are taking advantage.

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?