The new products will make it easier for first-time buyers to own their own home
Sainsbury’s Bank is extending its mortgage range with the launch of four new 95% loan-to-value (LTV) mortgage products aimed at helping customers get on the property ladder.
Designed with first and second time buyers in mind, the new mortgage products will be available via the Bank’s broker and direct telephony channels. Available with either two or five year fixed terms, each offers a £250 cashback incentive and free valuation, with rates starting at 3.49% (3).
Market analysis commissioned by Sainsbury’s Bank Mortgages found that currently just under 8 per cent of mortgage products offer an LTV of 95% or more (2).
David Buxton, Head of Banking at Sainsbury’s Bank, said: “We believe the 95% LTV market will continue to play an important role in the future of UK mortgage lending and we’re delighted to introduce these new competitive products.
“We offer quality products to homeowners and would be homeowners across the UK with rewards and competitive rates, and we understand the pressures and challenges many face when trying to get their first foot on the property ladder. This range of new products, paired with the incentive of free valuation and cash back will make it possible for first time buyers, and support second time buyers, to find their perfect home.”
Latest first time-buyer figures from the Council of Mortgage Lenders (CML) found there were 31,700 first time buyer loans awarded in October, up 10.5 per cent on a year ago (4). Sainsbury’s Bank is committed to helping its customers own their homes and launching this range will assist a wider range of customers realise their property dreams.
Sainsbury’s Bank offers a range of competitive mortgages for homeowners across the UK with flexible features that allow overpayments, underpayments, and payment holidays (1). The Bank also offers Sainsbury’s shoppers a loyalty reward.
Mortgages also come 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(5) a year (in vouchers) off their shopping, for two years. Terms and conditions apply.
Product Rate Fee
2 year fixed 3.49% £995
2 year fixed 3.69% £0
5 year fixed 3.99% £995
5 year fixed 4.05% £0
A mortgage of £166,000 with an assumed start date of 30/06/2018 payable over 25 years initially on a fixed rate for 2 years at 3.69% and then on our current variable rate of 4.24% for the remaining 23 years would require 24 monthly payments of £848.05 and 276 monthly payments of £894.95.
The total amount payable would be £267,684.40 made up of the loan amount plus interest of £101,359.4, a product fee of £0, a valuation fee of £0, a legal fee of £200, a funds transfer fee of £25 and a mortgage exit fee of £100. Please refer to your Mortgage Illustration for details on other fees payable to your mortgage.
The overall cost for comparison is 4.2% APRC Representative
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For further information, please contact:
Sainsbury’s Bank press office 0131 286 0010 / [email protected]
This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.
Rates and information correct at date of issue.
Notes to editors:
(1) 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.
(2) MoneyComms market analysis, February 2018
(3) Sainsbury’s Bank Mortgages https://www.sainsburysbank.co.uk/mortgages/index
(4) Council of Mortgage Lenders. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 97% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 trillion. https://www.cml.org.uk/news/press-releases/remortgaging-boost-continued-in-october/
(5) Apply for one of our mortgages by 24th September 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.
About Sainsbury’s Bank
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Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top best buy tables and regularly win awards for quality, price and service.
Sainsbury's Bank plc. Registered Office, 33 Holborn, London EC1N 2HT (registered in England and Wales, no 3279730) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514). Sainsbury's Bank plc is covered by the Financial Services Compensation Scheme (FSCS).
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