PO to offer super-size mortgages to first-time buyers

[TrueBlueTerrier]

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The government is set to announce that Post Offices will start offering 'super-size' mortgages to help young people with little savings buy their first home, reports the Daily Mail.

Under the new plan, the lender will provide mortgages to Britons who can only afford a ten per cent deposit .

However, the anticipated launch of the new product will raise fears that young consumers will be left vulnerable to a negative equity crisis if house prices fall over the next few years.

The Post Office currently provides mortgages that require a minimum deposit of 20 per cent, but it is hoped that the new offers will enable it to rival high-street lenders .

Indeed, it will soon start offering consumers current accounts and children's savings accounts.

The decision to introduce these new products is designed to rescue the Post Office, which has been badly affected by a loss of key government contracts.

In 2007, the government provided a £1.7 billion subsidy to Royal Mail Group - the Post Office's parent company - so that it could turn a profit by next year.

[pickaname]

So ill still need about 15 grand saved up to buy a house where i live?

No chance of that on RM wages...