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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

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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."

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