P.O.S.B. widens mortgage finance

Press, 19 July 1983, Page 3

P.O.S.B. widens mortgage finance

PA Wellington First-mortgage finance will be made available by the Post Office to holders of its home ownership accounts starting next month, said the Government yesterday.

Few details were immediately available. The Post-master-General, Mr Talbot, is expected to make another statement in about a week.

In a joint statement, Mr Talbot and the Minister of Housing, Mr Friedlander, said the people immediately benefiting from the change will be those with the accounts and who do not qualify on income criteria for Housing Corporation loans.

From August 1 they will be able to get first mortgage money direct from the Post Office Savings Bank. The bank at present advances housing loans on second mortgage only.

The Ministers said: “Home ownership account holders who do not meet the Housing Corporation’s lend-, ing criteria but have their savings with institutions other than the P. 0.5.8. are already expected to seek their finance from the organisation with which they have their savings.” The change would have no effects on the benefits at present offered by the home ownership accounts scheme, they said.

“The change will enable the Post Office Savings Bank to meet its customers’ first mortgage needs, thus broadening the scope of the bank’s services in line with current market lending practices.” It “will mean a greater degree of commercial orientation for the bank’s activities, allowing it to offer the same competitive benefits as private sector lending institutions.” The home ownership accounts scheme was introduced in 1974 to encourage people to save for their first home.