Sainsbury’s Bank is launching residential home purchase mortgages and remortgages for first time buyers, lending into retirement for certain customers and for the self-employed, across the whole of the UK.
It will be selling direct and via intermediary partners. Customers can contact the bank direct over the phone and speak to its team of mortgage advisers or apply through intermediary pilot partner L&C Mortgages.
It is also partnering with Legal & General’s Mortgage Club, which will initially provide new entrant broker business support.
Sainsbury’s Bank says that it will welcome more brokers on board over the next 12 months.
The new range initially includes a two (fee and no fee options), and five-year fixed rate product, and a two-year tracker with LTVs of up to 90%, and it will consider customers aged up to 70 years old.
Flexible features allow overpayments, underpayments, and payment holidays.
It will move into buy-to-let future down the line, it said.
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.
Catherine More, head of mortgages at 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.”
The launch marks the start of our expansion into the mortgage market. Over time we will review and add to our mortgage range, this will include launching buy-to-let as well as refining our entry product offers.
David Hollingworth of L&C Mortgages added: “We are absolutely delighted to work with Sainsbury’s Bank and to help support the launch of its mortgage proposition into the market.
“Its commitment to the intermediary channel is clear and underlines its intention to be a major mortgage brand. The launch of a new, significant player like Sainsbury’s Bank can only help brokers and their customers, providing greater choice to those seeking quality, good value mortgage solutions.”
