Post Office stepping up mortgage offering
The Post Office is expanding its mortgage service with the introduction of mortgage specialists in its branches.
Mortgages have been available from the Post Office since 2009, but applications have had to be made online or over the phone.
It currently offers mortgage with deposits as low as 10 per cent and plans to enhance its range in the near future.
The mortgage specialists will initially be available at Post Office branches in Birmingham, Solihull, Walsall, Luton and Norwich.
Customers will be able to discuss the mortgage products available from the Post Office, but advice will not be given on loans from other providers.
The advisors will be able to display potential Post Office mortgages on screen, submit applications and offer customers a printed Approval in Principle within a few minutes.
If the service is successful, it will be launched at more of the Post Office’s larger branches in the future.
Over 100 in-branch mortgage specialists could eventually be provided.
The expansion is part of the Post Office’s strategy to become one of the top 10 largest mortgage lenders in the UK.
The new service from the Post Office comes at a time when the mortgage market is slowing in the face of a UK recession and the crisis in the eurozone.
According to the latest figures from estate agency Connells, the number of valuations in July fell by 13 per cent compared with the previous month, and the number of first-time buyers fell by 20 per cent.
The launch of the government’s Funding for Lending scheme is expected to boost the housing market.
Under the scheme, the Bank of England will lend money to financial institutions at rates significantly lower than those on the wholesale financial markets.
This should allow them to increase their lending to consumers and small businesses.