Sainsbury’s Bank Expands Into Mortgages

10 April 2017

  • Launching with flexible features that allow overpayments, underpayments, and payment holidays(1)
  • Available for first time buyers, lending into retirement and for the self-employed (2)
  • We’re offering mortgages that come with a shopping reward(3)
  • Flexibility – mortgages available direct and through intermediaries
  • Range includes fixed and variable mortgages with LTVs of up to 90%

Sainsbury’s Bank is launching mortgages especially designed and developed for the Sainsbury’s customer. We will offer residential home purchase mortgages and remortgages for first time buyers, lending into retirement for certain customers and for the self-employed, across the whole of the UK.

Our range of fixed and variable rate products offers flexible features(1) that allow overpayments, underpayments, and payment holidays.

We are also introducing a mortgage that comes with an added shopper reward. Both home purchase and remortgages include a unique reward scheme for supermarket customers. The mortgages reward the customer loyalty of Sainsbury’s shoppers, by letting them earn up to £200(3) a year (in vouchers) off their shopping, for two years.

The new range, which can be seen in detail at sainsburysbank.co.uk initially includes a two (fee and no fee options), and five-year fixed rate product, and a two-year tracker with us offering loan-to-values (LTVs) of up to 90%, and we will consider customers aged up to 70 years old.

Customers can contact the Bank direct over the phone and speak to our team of mortgage advisers, or apply through initial intermediary pilot broker partner, L&C Mortgages. Direct, non-advised online applications will be launched later this year.

Catherine More, Head of Mortgages Sainsbury’s Bank said: “Mortgages and grocery shopping are some of our customers’ biggest household expenditures and we’re uniquely placed to help them out with both.

“We’ve built our new mortgages in response to our customers’ needs, they told us they wanted to feel supported through the whole process, that they wanted the flexibility to pick the advice that suits them, and to receive a good deal.”

The launch marks the start of our expansion into the mortgage market. Over time we will review and add to our mortgage range, this will include launching buy-to-let as well as refining our entry product offers.

The intermediary channel is a preferred route for many of our customers and crucial to our expansion, so we’re also partnering with Legal & General’s Mortgage Club with a view to welcoming more brokers on board over the next twelve months.

Mortgage pricing has been set to ensure Sainsbury’s Bank products are competitive and affordable with rates starting from 1.34%. The range includes fee-free products. Remortgage customers will benefit from fee-assisted valuations and legal advice.

Andrew Hagger of Moneycomms said: “It is good to see a provider entering the mortgage market with such a competitively priced range of products across the full range of LTVs. The added bonus of a shopper reward is an innovative move that makes the deal even more appealing for Sainsbury’s shoppers – the option to earn up to £400 vouchers off shopping over two years is not to be sniffed at.”

David Hollingworth of L&C Mortgages, said: “We welcome more competition in the mortgage market and particularly from those entrants that have put real customers at the heart of their design. We’re delighted to be working with Sainsbury’s Bank as initial intermediary pilot partner.”

Customers applying over the phone can call 0345 111 8005 between 8am and 9pm Monday to Friday or between 9am and 4pm on Saturdays and 10am to 1pm on Sunday.

-Ends-

For further information, please contact:

Natasha Virtue, Sainsbury’s Bank on 0131 286 0010 / bank_communications@sainsburys.co.uk / Citigate Dewe Rogerson 020 7368 9571

Notes:

  • Terms and conditions apply to all our flexible features. Charges may apply.
  • The mortgage is secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage. Lending subject to status.
  • Apply for one of our mortgages by 26th February 2018 (inclusive) and if your application is approved, you’ll be eligible to receive 5% of your grocery shopping bill back in vouchers for two years from the start date of your mortgage. You have to use your Nectar card each time you shop at Sainsbury’s and the maximum reward you can earn in each 3 month period (“quarter”) is £50, even if 5% of your spend amounts to more than this. So, even if you spend more than £1,000 in the quarter, you’ll only earn a £50 reward. We won’t send you vouchers if you earn less than £5 worth of vouchers in that quarter. We won’t carry any amount into the next quarter. So your qualifying spend needs to be at least £100 in the quarter to earn the minimum £5 reward. Vouchers can be redeemed in any Sainsbury’s supermarket or Sainsbury’s Local in the UK. Vouchers may ony be used instore as per the terms specified on the vouchers and cannot be used to buy from Sainsbury’s websites. Offer available to new residential mortgage account customers only. Vouchers will only be valid until the expiry date printed on the voucher, which will be up to one month from date of issue. We reserve the right to terminate this offer from the date: you fail to meet the terms of your mortgage; or you repay the mortgage; or if you move (“port”) your mortgage to another property. Sainsbury’s Bank reserves the right to alter, cancel or withdraw the offer at any time, without prior notice.

We calculate the amount you receive in vouchers based on the “points earned on” total shown on your till receipt when you spend in Sainsbury’s stores or at Sainsbury’s online. The following spend is excluded from this offer and we won’t include it when we work out the value of the voucher(s) you receive:-

  • purchases made at Sainsbury’s Telecoms, Energy or at Argos or Habitat;
  • purchases of Sainsbury’s Bank products;
  • purchases made at Sainsbury’s Petrol Filling Stations;
  • items on which you don’t collect Nectar points at Sainsbury’s. You can find a full list of these in the FAQ section at sainsburys.co.uk/Nectar.

We use your Nectar card to work out your qualifying spend so you must hold a valid Nectar card in your name and tell us your Nectar card number to receive this offer. We count spend on all Nectar cards linked to the Nectar card number you give us at the time of your application. You can give us your Nectar card number when you apply for your mortgage or at any time during the first year of your mortgage. If you give us your Nectar card number after the start date of your mortgage, we’ll backdate your reward to the start of the current quarter only, and you’ll benefit from the reward from then, for the remainder of the offer, i.e. up to the end date of two years from the start date of your mortgage. From the start date of your mortgage, we’ll send you vouchers every quarter, for a period of two years (unless we remove the offer in accordance with these terms and conditions). We’ll post your voucher(s) to the mortgage address no later than 60 days after the end of the quarter. Your first voucher(s) will be based on your eligible spend in the first three months from the start date of your mortgage. We calculate the value of the voucher(s) you will receive in a quarter by taking the “points earned on” total for each transaction in that quarter and rounding it up to the next £1. We then add them together, calculate 5% and (where over £5) round that up to the next pound.

L&C Mortgages

Over 1 million people have already come to L&C Mortgages for expert, fee free mortgage advice. Our qualified advisers will help you secure the best mortgage deal whether you’re a first time buyer, remortgaging your home, buying to let or moving up the property ladder. We’ll help you throughout the mortgage process – no hidden costs or surprises, just straightforward, honest, mortgage advice. www.landc.co.uk

Legal & General Group Plc

1.Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £14.6bn (as at 08 December 2016) and is responsible for investing £841.5bn worldwide (as at 30 June 2016) on behalf of investors, policyholders and shareholders.

2.Legal & General has over seven million customers in the UK for life assurance, pensions, investments and general insurance plans and over one million customers in the US who rely on us for life assurance.

3.In 2015, Legal & General’s operating profit (IFRS basis) was £1,455m and adjusted earnings per share were 18.58p for the period, an increase of 14% and 11% respectively. For H1 2016 Legal & General’s adjusted operating profit was £822m, an increase of 10%, profit before tax attributable to equity holders was £826m, an increase of 23%, adjusted earnings per share were 11.20p for the period, an increase of 14%, and net cash generation of £727m, an increase of 16%.

For more information on Legal & General, please see www.legalandgeneralgroup.com