M&S Bank aims for first-timers with mortgage deals

Mortage 'milestone'
Mortage 'milestone'

M&S Bank has launched its first mortgage range - with deals aimed at helping people onto the property ladder as well as money being donated to housing charity Shelter for home loans purchased.

The deals include a first-time buyer range, as well as mortgages for home movers and home owners looking to re-mortgage. Fixed and tracker options will be available.

The bank said it will bring the “M&S-standard service” to its mortgages.

To support people buying their first home, up to four borrowers planning to live in a property will be able to take out a mortgage together.

First-time buyers are also being offered £1,000 cashback as well as a free valuation.

M&S Bank’s first-time buyer range includes two and five-year fixed rate and two-year tracker mortgages, from 60 to 90% loan-to-value (LTV), on terms lasting up to 30 years.

Examples include a two-year fixed rate at 2.09% including the £1,000 cashback and free valuation, for someone with a 10% deposit to put down. Borrowers will need to stump up a £995 fee for this deal, although a “fee saver” option with a higher mortgage rate is also available.

M&S Bank has also said it will donate £25 to Shelter for every mortgage purchased.

The bank said that, with families often looking to support loved ones financially, it is also offering customers re-mortgaging with M&S Bank the option to consider additional borrowing, at the same rate and term as their M&S Bank mortgage.

This would give them a lump sum which could be “gifted” to someone else to use towards a house deposit.

M&S Bank, which already offers current accounts, credit cards, personal loans and insurance, said its first mortgage range marks a “key step” 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 and 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 they make the biggest and most important purchase they will ever make - their home.