M&S Bank has launched its first mortgage range with a number of fixed and tracker options for home movers, remortgaging and first-time buyers.
Sue Fox, CEO of M&S Bank, said: “The launch of an M&S mortgage is a major milestone for M&S Bank and I’m delighted that customers will now be able to get the M&S-standard service they have come to know and expect from M&S Bank when they make the biggest and most important purchase they will ever make – their home.
“With this in mind, we have developed a range of solutions to support first-time buyers and to assist families with their desire to help loved ones make that critical first step on the property ladder.”
First-time buyers
For first-time buyers, M&S Bank is offering a £1,000 cashback plus a free valuation. The first time buyer range includes two- and five-year fixed rate and two-year tracker mortgages, from 60% to 90% loan to value (LTV), on terms up to 30 years, with fee-saver options across the range.
Four borrowers
M&S Bank will allow up to four borrowers who will live in the property to take out a mortgage together. The bank says this is ideal for a group of friends or siblings who want to realise their dream of homeownership, but perhaps wouldn’t be able to do so alone. This applies to first-time buyers, home movers and those remortgaging.
Remortgaging
Remortgaging customers also have the option to consider additional borrowing, at the same rate and term as their M&S Bank mortgage. This would give them a lump sum which could be ‘gifted’ to a loved one to use towards a house deposit.
Customers remortgaging to M&S Bank from another provider will also benefit from fee assisted legal service, which covers the cost of the standard legal work required to remortgage from another lender.
Partnership with Shelter
To mark the launch of its first mortgage range, M&S Bank is also working in partnership with Shelter, the housing and homelessness charity, which will see M&S Bank donate £25 to Shelter for every mortgage purchased.
Polly Neate, CEO of Shelter, said: “We are extremely excited about the potential to raise significant funds for Shelter, and want to thank M&S Bank, its employees and customers for this unique opportunity. Together, we can help to make sure no one has to fight bad housing or homelessness on their own.”
How to apply
M&S Bank Mortgages are available directly from M&S Bank and through the broker channel, starting with London & Country and rolling-out more widely throughout 2018. Customers can also apply for an M&S Bank Mortgage via telephone on 0800 923 1536, lines are open 8am-8pm Monday to Friday and 9am-1pm Saturday.
Comment
Andrew Hagger of Moneycomms.co.uk says the M&S Bank mortgage range should prove a big hit with first-time buyers.
He commented: “Having featured consistently towards the top of the best buy tables with personal loan and credit card products for many years, it appears M&S Bank is following a similar strategy with its mortgages.
“The combination of a competitive rate, fee and a market leading £1,000 cashback will make M&S Bank a popular choice for those looking to buy their first home.
“It’s good to see some extra competition in the residential mortgage space from one of the UK’s biggest brand names – hopefully it will put pressure on other players to keep pricing low.
“As with similar forays into mortgages by supermarket banks, Tesco and Sainsbury’s, based on these initial products it looks as if M&S Bank will give established lenders something to think about.”
