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Post Office still bans islands’ mortgages                 14/3/14

The Post Office has reversed its ban against offering mortgages for home buyers on Lewis and Harris.

But, despite widely promoting its financial products to islanders, the Government-owned network which boasts it “sits at the heart of many communities” still excludes people living in Uist, Benbecula and Barra from applying for a home loan. Other Scottish islands are also left out.

However, Hebrides News understands applications from the Southern Isles may be considered on a case-by-case basis.

The Post Office - which highlights it has more branches than all the high street banks combined - has refused mortgages for properties on all islands, except Skye, since 2008.  

The ban appears to be down to the Post Office suggesting a shortage of qualified surveyors in the islands to undertake home reports and property valuations.

It conceded a partial u-turn after Independent Highlands and Islands MSP Jean Urquhart raised the issue with Post Office chief executive Paula Vennells.

Jean Urquhart said: “We desperately need alternatives to the big banks, and Post Office financial services could play a big role in that. It’s great news that many islanders will now have that greater choice.

“But many islanders are still excluded by the new rules, from Uist to Unst, from Great Cumbrae to Papa Westray. I’ll keep pushing to persuade the Post Office to stick to its roots as a truly universal service.”

She added: “I first raised this issue only two weeks ago, and the Post Office have listened and responded quickly. They’ve shown they are willing to engage, and I understand they are keeping their island mortgage rules under review. So I would urge those islanders who are still excluded to contact the Post Office and tell them the demand is there.