The bank has plans to expand its distribution network throughout 2018.
Its product range includes fixed-rate and tracker options available to home movers and remortgage customers along with a first-time buyer range.
The 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. Fee-saver options are available across the range as is a £1,000 cashback.
M&S Bank will allow up to four borrowers who will live in the property to take out a mortgage together and this can be applied to first time buyers, home movers and those remortgaging.
It is also offering customers remortgaging with M&S Bank the facility to consider additional borrowing at the same rate and term to then gift a lump sum to use towards a house deposit.
- 90% loan to value (LTV) at 2.09% fixed for two-years with £995 fee
- 90% LTV at 2.79% fixed for five-years with no fee
Homebuyers and remortgage
- 80% LTV at 1.69% fixed for two-years with £995 fee
- 80% LTV at 2.09% fixed for five years with £995 fee
Moneyfacts welcomed its entry to the market and said the product range was “competitively priced” but there were cheaper options available.
“The range of mortgages are competitively priced and first-time buyers get a generous £1,000 cashback or cash saving incentives, which can be a huge help,” said Moneyfacts spokeswoman Rachel Springall.
“Not only this, but M&S Bank is working in partnership with Shelter and will be donating £25 to this charity for every mortgage purchased, a worthy cause.
“As with any deal though, borrowers will be wise to work out the true cost of any deal, particularly as there are lower rates available in the market, which include fee-free deals. As an example, Sainsbury’s Bank offers an 80% LTV two-year fixed mortgage priced at 1.69% with no product fee and it offers a free valuation, plus remortgage customers get free legal fees.”
Very competitive market
London & Country associate director communications David Hollingworth told Mortgage Solutions the broker was delighted to help M&S Bank launch into the mortgage market.
“We worked with HSBC as an early partner in its move into the intermediary market, which has proven to be a hugely successful move into the broker space,” he said.
“I’m sure that M&S Bank will also make a strong impact given its extremely strong brand and add another option for brokers and their customers, in what is a very competitive market.
“Its initial product range has also put an emphasis on first-time buyers, in addition to purchase and remortgage, with a solid incentive package of free valuation and £1,000 cashback,” he added.
M&S Bank CEO Sue Fox noted that the launch of the mortgage offer was a major milestone for the bank.
“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.”