Sainsbury’s Bank has launched a range of mortgage products targeted at first time buyers, older borrowers up to 70 years of age, and the self-employed. The products start with interest rates of 1.34% and offer flexible repayment terms such as early repayment options, payment holidays if borrowers need to put a temporary hold on repayments, as well as the ability to pay a reduced amount in some months.
These products are available directly from the lender or through the intermediary channel, with mortgage broker firm London & Country and any broker signed up to Legal & General’s mortgage club able to offer these loans. Borrowers who take out these loan products will be able to borrow up to a maximum 90% loan-to-value ratio on loans up to £500,000.
Furthermore, the deals also come with rewards for supermarket customers, allowing them to earn up to £200 a year in vouchers towards their shopping for 2 years. RFi Group’s data from the UK Mortgage Council shows that 41% of mortgage holders would place a high importance on a lender’s reward or incentive scheme, with reward points such as Nectar or Clubcard points, and shopping vouchers/ discounts considered the most appealing types of rewards among these mortgage holders, suggesting that the bank’s new offering is likely to attract many homebuyers.
Source: RFi Group UK Mortgage Council Q1 2017