Sainsbury's Bank to relaunch mortgages
Sainsbury’s Bank will re-enter the mortgage market next year, the supermarket has revealed in its trading update today.
A note in the interim report said the bank will launch new mortgage products in 2017 in light of strong recent trading performance, although the details of these have yet to be announced.
The bank now has 1.7 million customers in the UK, and its ATMs dispense 9% of all cash withdrawn from the Link Network.
A Sainsbury’s Bank spokesperson says: “We are constantly looking at ways to enhance our service, operations and products; offering mortgages is one of a number of options that we’ve been exploring. We’ve made good progress with this and are planning to re-introduce mortgages during 2017.”
- “Are you overpaying for your mortgage? See our weekly roundup of the best remortgaging deals.
Sainsbury’s Bank was the first supermarket bank to offer mortgages, back in 1997. It has not sold any new mortgages since 2004, when it exited the market to focus on other product areas, notably insurance, though it does still have a small number of mortgage borrowers on its books.
The bank’s plans to re-enter the mortgage market have been brewing for some time.
FTAdviser, a trade magazine for independent financial advisers, recently reported that Sainsbury’s snapped up sainsburysmortgages.com and sainsburysmortgages.co.uk last December, though the websites aren’t active yet.
Rival Tesco Bank entered the mortgage market in August 2012, lending at up to 95% LTV and offering Clubcard points on interest payments.
Changing mortgages without moving home. Property owners chiefly remortgage to get a better deal but some do so to release equity in their homes or to finance home improvements, the costs of which are added to the new mortgage. Even though you’re not moving house, you still need to engage solicitors, conveyancing and the new lender will require the property to be surveyed and valued.