UK retailer Marks & Spencer has launched its first mortgage range through M&S Bank, which will include fixed and tracker options for purchase and re-mortgage.
The new range was launched by the banking arm of the retailer, with the goal to help people onto the property ladder and donate money to the housing charity Shelter for purchased home loans, according to the Irish Independent.
The bank said it will bring the 'M&S-standard service' to its mortgage range. Up to four borrowers planning to live in a property will be able to jointly take out a mortgage, as part of the scheme.
The mortgage offer complements M&S Bank’s portfolio of current accounts, credit cards, personal loans and insurances, marking a 'key step' in the company’s transition from a financial service provider to a full-service bank, the company said.
In a move to lure in would-be homeowners, first-time buyers will also be able to avail of £1,000 cashback and free valuation.
The first-time buyer range includes two and five-year fixed rate and two-year tracker mortgages, ranging from 60% to 90% loan-to-value, on terms which last up to 30 years.
For example, the bank will offer a two-year fixed rate at 2.09% including £1,000 cashback and free valuation, for people with a 10% deposit.
Potential borrowers will have to shell out a £995 fee for this deal, although a ‘fee saver’ option is also available with a higher mortgage rate.
For every one of its mortgages purchased, the retailer has said it will donate £25 to Shelter, which campaigns to end homelessness and bad housing in England and Scotland.
With families often wanting to support loved ones financially, the bank is offering customers re-mortgaging with the option of using additional borrowing, at the same rate and term as their own mortgage with the bank. This would give them a lump sum which they could give to someone else to use for a house deposit.
"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,” said Sue Fox, chief executive of M&S Bank.
"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 step on the property ladder."
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