Post Office Offers Mortgages; PERSONAL FINANCE

Article excerpt

The Post Office has announced plans to enter the mortgage market, saying it would offer good value home loans that are easy for customers to understand.

The group is trying out three mortgage products through selected branches in the north of England, an area that has traditionally been the stronghold of troubled bank Northern Rock.

The products being launched are a three-year fixed rate loan with a rate of 6.09 per cent, a fixed rate buy-to-let loan at 6.35 per cent and a self-certification discount loan offering a rate of 6.44 per cent.

The Post Office said the products would have a transparent pricing structure, including a low-cost fixed arrangement fee of pounds 399, no higher lending charges for people borrowing a high proportion of their home's value and no hidden charges.

The group, which already offers credit cards, loans, insurance and savings accounts, said as the mortgage market became increasingly complex, it was aiming to provide straightforward mortgages that offered good value both initially and over the long term.

The Post Office is currently the UK's fastest-growing financial services provider, with more than one million customers. …