View more on these topics

Post Office launches 90% LTV mortgages  

The Post Office is launching a new range of 90% LTV deals tomorrow, with two-year fixed rates from 5.45%.

In addition, Post Office Mortgages is offering 85% LTV deals and has cut rates across its other mortgages for the fifth time this year.

It is also introducing a new fee free five-year fixed mortgage for existing homeowners looking to change their lender.

Like all Post Office mortgages, details of the new 90% LTV range will be available over the telephone, from Post Office branches and on the Post Office’s website.

The range is available to both first-time buyers and existing homeowners who need to remortgage. 

The new 90% LTV range includes a two-year fixed rate at 5.45%, a three -year fixed rate at 5.99%, a five -year fixed rate at 5.99%and a tracker at 5.49%.

The Post Office has cut the rates of all its fixed rate mortgages across its existing 75% and 80% LTV ranges, in some cases by 0.36%.

Marco Hughes, director of personal lending at the Post Office, says: “Whilst there are existing 90% deals available, many remain out of reach for most borrowers because the rates are too high.

“Instead, we’re offering more affordable rates that will allow more borrowers the opportunity to take out a mortgage with a smaller deposit.  This should particularly help first time buyers.  However, we are not forgetting those looking to move lenders and are offering a new ‘fee free’ range to help them too.

“The latest additions to our range and the futher rate cuts reflect our commitment to offer our customers market leading rates.

“As a leading player in the market now offering more than 40 different mortgages, we believe in giving long term value for the life of the mortgage.  This means being up front and transparent about any fees and clear about the rate you’ll get when the ‘fixed’ period is over.”


UK unemployment reaches 2.51m

The number of unemployed in the UK rose by 53,000 to 2.51 million during the last three months to March, figures from the Office of National Statistics show – the highest level since December 1994.

Jeff Knight

Keep adding value for your top clients

Many readers will be familiar with Pareto’s 80/20 rule – 80% of business is generated from 20% of clients. When it comes to holding onto your top clients the best form of defence is attack. This is because you can’t assume they will remain loyal forever and they will cost a lot to replace if […]

Offsets better than cash ISAs, says First Direct

First Direct says that in the past 10 years cash ISA savers who also hold a mortgage would have been £3,306 better off by placing their savings in an offset account.


60 Seconds With… Bob Hunt

BOB HUNTCHIEF EXECUTIVEPARADIGM MORTGAGE SERVICES Can you explain the Paradigm model? Paradigm Group offers business consultancy and solutions for all intermediary businesses, with a focus on established IFAs and mortgage brokers. We have some 610 partner firms operating across all business areas and represent more than 2,500 registered individuals. Our ambitions are underpinned by a […]


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • La La 21st May 2010 at 1:15 pm

    Yes, I wonder what the poor unwashed will do without the invaluable advice of their broker steering them toward the product with the largest procuration fee? Oh, wait…

  • Ancient Wisdom 12th May 2010 at 6:42 pm

    I bet BOI & B&W sales figures have dropped 90% to match their LTV – because I dont know ANYONE who will go to the post office to arrange a mortgage…but hey, maybe things are changing?

    I hope they send the proof of income, ID, bank statements via UPS – as Royal Mail certainly wont get it right….

    ….and the amount of theiving postmen in the Royal Mail intercepting post – you stand to lose more than your valuation fee.

  • Paul 12th May 2010 at 1:55 pm

    Dan – that is perhaps the most frightening statement ever for a financial service provider, and unfortunately it is completely true. Same as the big banks, ‘I see you have our Visa card sir, do you know you are eligible for our special Mastercard too’. Irresponsible lending at it’s best. Thanks again FSA

  • Dan McGeehan 12th May 2010 at 1:36 pm

    The post office is great…where else can you go and buy a stamp and at the same time arrange a mortgage at 90% lTV for 4 times joint income. Dont worry if you dont have enough deposit as the post office can arrange a loan and even throw in a credit card to pay for the legal fees. As is is all non regulated as non advice the staff wont care…their only concern is making targets by selling financial products whilst giving you a stamp.

  • Ray Rajani 12th May 2010 at 12:01 pm

    Absolute discgrace
    This is how underhanded BOI & Bristol & west are.
    I was a BDM of BOI and was told Jan 2009 – sorry lands we are pulling out of the intermediary market and out of UK lending as the Irish Gov said so.
    Next thing we know – oh by the way we are going into a closed distribution with the post office.

    Fact : Post office does not offer advice or TCF.

    Fact: Levels of service are low and how can the same organisation who sell stamps also be allowed to give mortgage advice on a execution only basis.

    Fact: the intermediary arm gave the BOI group 80% of thier business with a low arrear rate with high margins

    485 people lost thier jobs and careers with a cost equal that of running the service centres without profit for 2 years.

    Lets hope that this will change in the new gov regime as Mandie loved the post office (maybe he got free stamps for life etc…)

    I hope that some of our intermediary lenders throw in some good deals soon

  • Stuart Duncan 12th May 2010 at 8:31 am

    Every time I hear Bank of Ireland, through Bristol & West, pretending to be the Post Office offering mortgages, I feel rather sick.

    This is the same lender who claimed to be “De-leveraging from the UK market” when the UK market most needed funds, the same lender who claimed that they were no longer using brokers and yet that is exactly what “The Post Office” is doing because, unless things have changed, they get a large procuration fee for each mortgage.

    Furthermore, this is primarily, if not exclusively, being marketed on a non-advised/execution-only basis and aimed, to a large degree, at first timr buyers and others who need advice most of all.

    Earlier in the Spring, we had the incredible spectacle of a Government Minister, Peter Mandelson, openly engaged in openly advertising “Post Office Mortgages”, so presumably people in his position do not fall under financial promotions regulations.

    It is an absolute disgrace and one hopes that the new regime in Westminster gets their act together and brings pressure on our regulator to stop letting this foreign bank ride roughshod over the aims of a supposedly regulated market.