The Post Office and the Bank of Ireland have finalised a joint venture to sell personal loans, savings accounts, credit cards, insurance and mortgages (Mortgage Solutions, 18 November, 2002). All will be branded as Post Office products, however mortgages are expected to be released last.
An unsecured personal loan will be released in the New Year with the other products rolled out thereafter. David Holden, head of group communications at the Bank of Ireland, said: “I would expect mortgages to come towards the end of that process.”
When they are eventually released the deal is unlikely to entail the bank’s entire mortgage range. Holden said: “Which mortgage products has yet to be decided, but the mantra of the project is simplicity and value, which would suggest that we would go for a very straightforward mortgage proposition.”
Under the present timetable the entire suite of products will be available within two years. The joint venture will be owned equally by the Post Office and Bank of Ireland Group and has an initial term of ten years.
David Mills, chief executive of the Post Office, said: “The Post Office retail network is larger than all the UK banks and building societies put together. This extensive network and customer base, coupled with Bank of Ireland’s expertise in the development and delivery of financial services products, creates a business with very exciting potential.”