The bank said its underlying profit of £65m, the current strength of its brand, and last year’s positive trading results meant it would be a position to go live with the range in 2017.
In 2016/17, Sainsbury’s expects bank operating profit to be around 10% lower year-on-year due to the investment required to enter the mortgage market.
In April last year, Mortgage Solutions exclusively revealed that Colin Snowdon, known for his work as a specialist mortgage consultant, had been hired by Sainsbury’s to work on its mortgage project on a short-term basis. Snowdon has since left Sainsbury’s to join Pepper Homeloans, as managing director from 1 February.
Sainsbury’s would not confirm which half year of next year it plans to enter the market but said it has made good progress towards to the development of the range.
