Post Office puts on a human face to boost mortgage business

The first seven specialists will be based in Birmingham, Solihull, Walsall, Luton and Norwich, under a scheme that will then be extended to larger branches in the Post Office’s 11,800-strong network.

The Post Office hopes the number of specialists, who will give advice about its own products, will eventually reach three figures.

Until now, applications for PO mortgages, which have been available since 2009, had to be made online or by phone.

The Post Office offers deals with deposits as low as 10 per cent and said it plans to “sharpen up” its range in the near future.

A spokeswoman for consumer help website Moneyfacts said the range does not currently appear on its best-buy tables, but the introduction of mortgage specialists would give borrowers more involvement in the “complex” process.

The Post Office offers mortgages, savings and credit cards as part of a joint venture with the Bank of Ireland.

It did not say how many mortgage customers it currently has or how many more it plans to take on.

Mike Cook, head of Post Office mortgages, said the business wants to build on its reputation as a trusted brand.

He said the ambition to become one of the top 10 largest mortgage lenders would take several years to achieve.

The strategy could help first-time buyers, many of whom have found themselves trapped in rented accommodation because of the cost of getting onto the property ladder.

Signs of a “mortgage war” have appeared between lenders trying to attract less “risky” borrowers who can afford larger deposits, those with smaller saving are expected to have a tougher time finding deals in the coming months in the face of the continuing weak economy.

Mr Cook said: “Last year over 40 per cent of our borrowers were first-time buyers, which is something we are always open to.”

Even as the advisers start work, the Post Office’s online and call centre services will remain in place.