Sainsbury’s Bank expands mortgage range to accidental landlords
The supermarket group, which is currently seeking to buy Asda, owned by US giant Walmart, called this a ‘key stage in its expansion’ and said the move was driven by broker feedback.
It said: “The supermarket bank has ambitions to be the number one choice in mortgages for the Sainsbury’s customer and this includes those starting out in the BTL market or those adding to their private investment.”
The mortgages will be offered through its expanding panel of mortgage advisers: Intrinsic, its newest broker, and Openwork, and L&G partners, L&C Mortgages, Mortgage Advice Bureau, Stonebridge Group, Alexander Hall, Springtide, First Mortgage Direct and SPF.
Remortgage rates start at 1.50% for a two-year fix at 60% loan to value (LTV) with a £1,995 fee, or 2.30% fee-free at the same LTV. Purchase loans begin from 1.49% at 60% LTV, or 1.88% at 75% LTV with a £1,995 fee.
The range is for non-portfolio landlords, or borrowers with up to three properties.
The provider is also launching a Consumer Buy to Let (CBTL) product for accidental landlords as part of the launch.
Lending is available up to £1m with a 60% LTV, and £500k up to 75% LTV.
David Buxton, head of banking at Sainsbury’s Bank, said: “We work in partnership with our broker partners and they told us that a buy-to-let range was important so we developed one as soon as we could, within our first year of trading. By creating strong partnerships and listening to our brokers every step of the way, we’re continuing to build a strong mortgage proposition.”
The minimum loan amount available starts at £40k, increasing to £1m with minimum terms starting at five years and rising to 40, with applications open to those with a minimum income of £20,000.
Sainsbury’s Bank was historically part owned by HBOS which later became Lloyds Banking Group, which sold mortgages via Bank of Scotland. Sainsbury’s took full ownership of Sainsbury’s Bank in 2014, expanding into mortgages as a ‘strategic priority’ in April 2017.