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M and S Bank to launch mortgage lender with broker distribution

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  • 20/10/2017
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M and S Bank to launch mortgage lender with broker distribution
M&S Bank will be launching a mortgage proposition in early 2018, subject to regulatory approval.

The bank, which is a joint venture between Marks and Spencer and HSBC, confirmed its mortgages would be available from its in store branches and through the broker channel.

Brokers already expect the strong brand recognition to prove a popular choice with borrowers and the wider broker market.

M&S Bank said it planned to offer mortgage products for first-time buyers and home movers, “with competitive rates across a range of terms”. It added that full details would be available in the New Year.

A spokeswoman for the bank would not confirm if it had already engaged in any distribution deals or was in the process of negotiating with networks.

 

Four million customers

M&S Bank was launched in 2012, evolving from M&S Money, and currently serves almost four million customers. It reported an annual growth of 60% in current accounts over the last two years.

The bank added that launching its mortgage proposition marked the final step in its transition from a financial services provider to a full-service bank.

M&S Bank CEO Sue Fox (pictured) said: “Since launching as a bank just five years ago, the M&S current accounts have proven incredibly popular with customers who want a transparent bank account, with no overdraft charges, and the same great service they have come to know and expect from the M&S brand.

“We’re incredibly excited to be able to bring this M&S-standard service to customers purchasing a home, whether they’re making their first or final step on the property ladder, and for every move in-between.”

She added that many of the store’s customers had shopped with M&S their whole lives. “We’re now in a position to support our customers with the biggest financial decision they’ll ever make – their home. And we know this isn’t just a financial decision – it’s about family, friends and future – and the memories that make up the tapestry of our lives.”

 

Strong brand

Coreco director Andrew Montlake was positive about the announcement. “We would always welcome new players in the mortgage market as long as they provide products which consumers need and value,” he told Mortgage Solutions.

“Given the strong brand M&S brings I am sure they will be a terrific addition and provide more competition which can only be a good thing for brokers and customers alike.”

London and Country associate director communications David Hollingworth added that he was pleased M&S will also launch through brokers as well as direct.

“The brand is such a strong and trusted name on the high street and of course it is already recognised as one that offers financial products, so I can’t see there being any hesitation in using them from borrowers and brokers alike,” he said.

“Of course, the key will still be in offering the right product, especially as the market is so competitive. There’s little reason to think that the pricing can’t compete given HSBCs track record.

“Tesco and Sainsbury’s are testament to the fact that high street names can compete successfully,” he added.

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