News
Post Office to offer 90% LTV mortgage to FTBs
The Government has revealed a major expansion of the financial services offered by the Post Office, including a new mortgage product with a 90% loan-to-value ratio.
The Post Office is also looking to increase its lending significantly and is aiming to double the value of its mortgage book in the financial year 2010/11.
Business secretary Lord Mandelson announced £180m of new funding for the Post Office in a drive to put banking back into the heart of communities and making the Post Office network of 11,500 branches more sustainable.
Mandelson said: “Since the global banking crisis we have set about reinventing the financial services industry piece-by-piece, building a system that is fairer, trusted and more responsible.
“This is the next step in that process. The Post Office is a well-loved community institution and this move will bring more banking services back to the heart of those communities.”
The measures announced by the Government mark a step change in banking at the Post Office and demonstrate the Government’s ongoing commitment to the Post Office network.
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The Post Office will also launch its own current account that will be accessible from any Post Office in the country and is in detailed negotiations with Royal Bank of Scotland and Santander to give access to their current accounts, meaning that around 86% of current accounts would be accessible at Post Offices.