Marks and Spencer Bank Launches Mortgages Range
- First mortgage range for the department store’s bank
- Deals aimed to help people get on the property ladder
- Retailer will also donate money to homeless charity Shelter with every purchase
- Moving focus into banking after poor retail figures?
Marks and Spencer Bank will now give customers the chance to get a mortgage with it.
Its’ main aim is to help out first time buyers to get on to the property ladder, with a range of deals for first time buyers.
One of these is allowing up to four borrowers, who are planning to live in a property with each other, being able to take out a mortgage together to make it easier to afford a first home.
First-time buyers are also being offered £1,000 cashback, and a free valuation.
The Bank branch of the department store already offers current account, credit cards, personal loans, and insurance.
It said that the mortgage range marks a key step up in its’ transition from a financial services provider, to a full-service bank.
Sue Fox, chief executive of M&S Bank, said, “The launch of an M&S mortgage is a major milestone for M&S Bank.
“I’m delighted that customers will now be able to get the M&S-standard service they have come to know and expect from M&S Bank when then make the biggest and most important purchase they will ever make- their home.
“With this in mind, we have developed a range of solutions to support first-time buyers and to assist families with their desire to help loved ones make that critical first steps on the property ladder.”
Marks and Spencer is not the only bank to be offering special deals for first time buyers.
Since it was announced in the Budget that there would be no Stamp Duty tax for first time buyers, other banks and building societies have competed for this share of the market.
Yorkshire Building Society offers first time buyers a two-year fixed deal at 1.82% for borrowers with a 10% deposit, with a £995 fee and £250 cashback.
Marks and Spencer will be competing with this deal by offering a two year fixed rate at 2.09% for buyers with a 10% deposit, with a fee of £995 but a £1,000 cashback and free valuation., but a ‘fee saver option’ with a higher mortgage rate is also available.
Principality Building Society is offering a similar deal too, fixed at 2.7% for borrowers with a 10% deposit, without a fee and including a free valuation.
Other banks like Nationwide, HSBC, and First Direct also have competitive offers for first time buyers.
Always compare offers when deciding on a mortgage or other bills, for example consumers can save up to £250 a year by changing energy suppliers.
Marks and Spencer will also be donating £25 to homeless charity Shelter with every mortgage purchased from it.
Polly Neate, chief executive of Shelter, said, “We’re extremely excited about the potential to raise significant funds for the charity through the move.”
The brand could be looking to expand its’ banking services after having year-on-year poor performances for its’ retail aspect.
In the final three months of last year, sales fell by 1.2% and shares fell almost three percent.
Senior market analyst Neil Wilson said, “The Christmas peak season comparison was always going to be a test; but M&S has failed badly.
“This isn’t just any retail decline, this is an M&S one.”
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