M&S Bank to launch mortgage offering in 2018
M&S Bank said it planned to offer mortgage products for first-time buyers and home movers, “with competitive rates across a range of terms”. It added that full details would be available in the New Year.
M&S Bank was launched in 2012, evolving from M&S Money, and currently serves almost four million customers. It reported an annual growth of 60% in current accounts over the last two years.
The bank added that launching its mortgage proposition marked the final step in its transition from a financial services provider to a full-service bank.
M&S Bank CEO, Sue Fox, said: “Since launching as a bank just five years ago, the M&S current accounts have proven incredibly popular with customers who want a transparent bank account, with no overdraft charges, and the same great service they have come to know and expect from the M&S brand.
“We’re incredibly excited to be able to bring this M&S-standard service to customers purchasing a home, whether they’re making their first or final step on the property ladder, and for every move in-between.”
She added that many of the store’s customers had shopped with M&S their whole lives. “We’re now in a position to support our customers with the biggest financial decision they’ll ever make – their home. And we know this isn’t just a financial decision – it’s about family, friends and future – and the memories that make up the tapestry of our lives.”
David Hollingworth, director at L&C Mortgages, said: “M&S is clearly a huge high street brand with real weight behind it in terms of quality and consumer trust. Consumers are well used to M&S offering financial products dating back to its original charge and credit card offering and more latterly the establishment of its current account. That existing foothold and strength of brand should give M&S a good platform for entering the mortgage market.
“The fact that it’s backed by HSBC should ensure that it can price sharply which is a must in what remains a fiercely competitive market and in our experience customers are open to new brands if the deal is right for them.
“There’s been a number of new entrants in the mortgage market in recent years, demonstrating that today’s borrowers will happily take to new brands. Challengers like Aldermore, Metro and more recently Atom Bank, are all established brands in the market. Big high street brands have already shown they have a place as well with Tesco Bank, and more recently Sainsbury’s Bank successfully competing in the mortgage market.”