by Peter Jacobs
In a moved back by the UK government the Post Office is soon to offer 90% loan to value (LTV) mortgages to first time buyers in the UK.
With the housing market still in a depression and first time buyers finding it increasingly difficult to find new funds because of high loan to value percentages the Post Office has learned that they will received government back funding of £180 million to offer first timers an opportunity to get loans back at previously high levels of LTVs.
Although the product will be sold through the Post Office branch network it is being effectively offered by the Bank of Ireland. This move which should start to see financial products offered properly by the Post Office should begin during 2011 and is thought to double the value of the organisation’s loan book.
Current offers in the best buy tables as well
Currently you can get a 2 year fixed mortgage at 3.15% for a 75% LTV and a five year fixed mortgage at 4.84% at a maximum 80% LTV and these are some of the best deals on the market place and with around average arrangement fees they may be worth considering if you have not already done so before.
In fact the organisation has just cut its rates for the fourth month in a row and offers some of the best loans in the market place and is actually the UK’s largest high street financial services provider.
Their arrangement fees are on a par with most other lenders and come out at around £999 for most of their products and they won the best online lender from “Your Mortgage” for 2009 and 2010.
Marco Hughes, director of personal lending for the company, said the reductions prove the Post Office is determined to provide long-term value for its customers.
They are determined to be seen as a serious lender and their standard variable rate that all mortgages revert to once the offer and deal period has completed is also one of the best in the market place. Many of their current deals are in the best buy tables and continue to be there with the latest rate cuts and this new offer to first time buyers for the 90% loan to value deal.
Applying for a Post Office Mortgage
You can get all the information from their website and apply online (although for some reasons there are browser restrictions but it should work for most people looking to get their mortgage deal from the Post Office). They also offer fixed rates, tracker mortgages, buy to let deals as well as other financial products for personal finance use.
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