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Post Office for Intermediaries to be ‘dominant’ BOI mortgage brand with broader distribution

  • 10/04/2018
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Post Office for Intermediaries to be ‘dominant’ BOI mortgage brand with broader distribution
Bank of Ireland (BOI) UK is readying to send out emails to intermediaries asking them to re-register with Post Office for Intermediaries in a ‘wider commitment' to mortgage brokers.




Post Office for Intermediaries is set to become BOI UK’s dominant mortgage lending brand by summer, the provider confirmed and the postal service said financial services will ‘be at the heart’ of its growth plans.

Brokers will hear more detail from sales and marketing shortly, but Alison Pallett, BOI director of sales, UK said brokers will receive two contracts by email with the first of three communication tranches today, which they must return and also re-register with the lender to access its products.

The lender will run both product ranges until brokers have returned their contracts, confirmed Pallett.


Putting the broker first


The broader distribution strategy was announced at an event last night attended by Mortgage Solutions and representatives of LSL, Connells, Tenet, Countrywide, Openwork, Sesame Bankhall, Intrinsic, PTFS, Paradigm, SimplyBiz, Mortgage Intelligence and Post Office for Intermediaries’ existing distribution partner Legal & General Mortgage Club.

“In partnership with the Post Office, we are taking another significant step forward to help deliver outstanding outcomes for more customers by combining the trusted brand of the Post Office, strong service, relationship and product expertise and the professionalism of the mortgage intermediary,” said Richard Rowntree, managing director for Bank of Ireland UK Mortgages.

He continued: “Working together, we have undertaken extensive customer research to understand what aspects of the mortgage market are just not working for our customers.”

“That research showed that for many, helping children get onto the housing ladder was a key priority, whilst for others being able to borrow into later life was important,” he added.

Two inter-generational lending products out today include Post Office Family Link and Post Office Retirement Link, available through an expanded Post Office for Intermediaries distribution, with webinars on both available soon.

Post Office Family Link targets customers with good affordability, but who are struggling to save for a deposit, to get on the property ladder themselves by allowing them to raise a 10% deposit against a close relative’s unencumbered property.

The 10% deposit loan is interest free and payable over five years, allowing the first-time buyer to repay capital on the main loan and benefit from house price inflation, then refinance at a lower loan to value after the term-end.


Later Life Lending

The second launch, Post Office Retirement Link  offers retired customers over 55 years old an alternative to equity release in the ability to take out a residential mortgage and use a portion of their pension to help fund it.

Available as capital & repayment or interest only, customers can borrow up to a maximum loan of £500,000. Interest only has a max LTV of 30% up to age 80 with capital & interest max 50% LTV offered up to age 90.

Post Office for Intermediaries is also planning a partnership with an undisclosed equity release lender, to be announced shortly, to allow parents to raise cash sums.

Owen Woodley, chief executive of financial services and telecoms, Post Office, said: “We’re acutely aware of the problems facing first-time buyers, with a nearly 40% decline in first time buyer home ownership in the last 20 years.

“Post Office Family Link tackles the number one problem preventing first time buyers from buying their own home; the deposit. It also means parents can help their children without gifting a large lump sum that may drain hard earned savings.”

He continued: “Meanwhile, Post Office Retirement Link offers retired borrowers a real alternative to equity release, allowing customers to live the life they want to in their later years. We’re very proud of both these new products, which are truly tailored and relevant to the challenges of modern homeownership.”

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