Sainsbury’s Bank launches back into mortgages with rates from 1.34%
The bank will offer residential home purchase mortgages for first-time buyers and remortgages, lending into retirement for selected customers and for self-employed borrowers, across the whole of the UK.
Sainsbury’s Bank, which last offered mortgages in 2004, said it intends to offer buy-to-let products in the future.
The new range includes a two (fee and no fee options), and five-year fixed rate product, and a two-year tracker with with loan-to-values of up to 90%. It will consider customers aged up to 70 years old. The mortgages come with flexible features that allow overpayments, underpayments, and payment holidays.
Both home purchase and remortgages include a reward scheme for supermarket customers. The mortgages reward the customer loyalty of Sainsbury’s shoppers by letting them earn up to £200 a year in vouchers off their shopping, for two years.
Customers can contact the bank direct over the phone and speak to its team of mortgage advisers or apply through brokers London and Country or Legal and General Mortgage Club.
Catherine More, head of mortgages Sainsbury’s Bank, said: Mortgages and grocery shopping are some of our customers’ biggest household expenditures and we’re uniquely placed to help them out with both. Our customers asked us for choice and flexibility and our product features, as well as various advice options, give them just that.”
Andrew Hagger, financial expert at Moneycomms, said: “It is good to see a provider entering the mortgage market with such a competitively priced range of products across the full range of LTVs. The added bonus of a shopper reward is an innovative move that makes the deal even more appealing for Sainsbury’s shoppers – the option to earn up to £400 vouchers off shopping over two years is not to be sniffed at.”