The Post Office is set to offer first-time buyers (FTBs) a
residential property mortgage that only requires a ten per cent deposit.
With £180 million in funding in place by the government, the Post Office is expected to extend its position within the financial services sector and provide support for the
residential mortgage market.
FTBs will need just 10% of the mortgage deposit, with the product being offered later this year.
Business secretary Lord Peter Mandelson announced the funding. The Post Office wants to double the value of its mortgage book during the 2010-11 financial year.
He said: "Since the global banking crisis we have set about reinventing the financial services industry piece-by-piece, building a system that is fairer, trusted and more responsible."
The Post Office currently offers residential mortgages for FTBs, which it claims are ideal for those looking to step on to the property ladder because arrangement fees cost £999.
Up to 80% of the mortgage deposit can be borrowed, 10% below the new product set to be released over the coming months.