It is been revealed that from tomorrow the Post Office will offer 90% mortgages for first-time buyers with rates of between 5.45% and 5.99%. It is believed that tracker and mortgage deals of up to 90% will also be available in a move which is certain to be replicated across the board. So is this the start of more competition in the UK mortgage market?
There is no doubt that the Post Office will attract significant attention from UK first-time buyers who are in many ways the lifeblood of the UK property market. It is hoped the other players in the UK mortgage market will follow suit and we will they see an improvement in competition and better terms available for both first-time buyers and those looking to move homes.
This is a major expansion of the UK Post Office network which is set to play a major role in the UK financial services sector in years to come. The UK government has put aside nearly £2 billion since 2007 to improve the appeal of the UK Post Office network. While mortgage markets have shown signs of improvement over the last few days, hopefully now the election is out of the way we will see further progress.
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