Post Office to sell mortgages

The Post Office has announced that it is to enter the mortgages market with what it describes as a range of simple deals.

According to the Times, the Post Office is seeking to cash in on the fact that many mortgage deals are complex and confusing to consumers.

Its homeowner loans will offer straightforward terms with no hidden charges, but be subject to a strict lending criteria.

There are three products on offer, including a three-year fixed rate loan of 6.09 per cent, available at up to 95 per cent of the property''s value (LTV).

The remaining two mortgages are a 6.35 per cent buy-to-let mortgage at up to 85 per cent LTV and a self-certification loan for self-employed borrowers of 6.44 per cent at up to 90 per cent LTV.

Melanie Bien, of Savills Private Finance, told the Times that the products are not "the most competitive" available.

The mortgages are being backed by the Bank of Ireland, which recently told Market Watch that its partnership with the Post Office "continues to do well".

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