Even as the Bank of England base rate stands unaltered at 0.5 percent, Post Offices, largest (read: voluminous) provider of high-end financial solutions, has gone ahead with their move of cutting mortgages rates for the fourth time in last four months. What more, the best part of this whole package is the fact that new deals are offered at fixed rates for as long as five years with some of them already are hailed as trend-setters.
Of course, this piece of news has arrived as a sort of blessing in disguise for depressed home buyers (Yes, they also provide Home Loans) and people who are part of rural communities too.
For those who don't know, thanks to these five year fixed rates for as low as 4.59 percent on loans to value up to 60 percent (which are at higher LTVs, such as 80 percent, with rates rising to 4.84 percent), the Post Offices have made it clear that they aim to take high street banks down with such offers.
Coming back to prospective home buyers, such development has benefited them as they already know what can be the maximum outgoing from their end. Thus, their already stretched household budgets can definitely absorb this financial shock.
Already, plans are in pipeline to follow-up the initiative with new current account and the first-time buyer mortgages thus, providing a feasible option to the prominent high street banks, who in past have been blamed for charging borrowers exorbitantly and paying back savers very thin.
Meanwhile, players in Price Comparison certainly stand to gain with it as they can definitely add post offices in their list of providers when it comes to loan comparison or to compare credit cards etc.
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