Targeting first-time buyers, the Post Office launched two new mortgage products today (Wednesday, march 9, 2011).
The Loan-to-Value ratio (the ratio of amount of Loan provided by the lender to the price of the property) for both the products can go up-to 90 percent. While one of the products is a 4.85 percent two-year tracker mortgage, the other one is a 5.75 percent fixed rate two year deal.
In an attempt to woo customers, the Post Office has lowered the 75 percent LTV two-year tracker rate to 2.85 percent from 2.99 percent.
The latest move by the Post Office comes on the same day when Clydesdale and Yorkshire Bank announced launching of their 95 percent LTV mortgage products for first time buyers.
Andrew Hagger of Moneynet.co.uk told the Daily Mirror that many first time buyers may find the 95 percent LTV products offered by the Clydesdale and Yorkshire Bank more attractive.
“Those who can afford £805 a month may choose the Clydesdale/Yorkshire option over scraping together an extra £6,000 for a ten per cent deposit, that could take them two more years”, said Mr. Hagger.