Customers are more used to perhaps buying a meal deal or a pair of pyjamas from M&S...now they are able to add a mortgage to their shopping list.
That's because the retailer has, as expected, gone into the home loans market. Marks and Spencer, plying their wares on our high street since the turn of last century, is offering, through M&S Bank, loans to first-time buyers and those keen to remortgage.
M&S previously annouced it was looking to offer mortgages and now the retailer has been given approval from the regulators -- thus the products have been launched today.
M&S says it is hoping to attract first-time buyers by offering £1,000 cashback and a free valuation. And in a move aimed at appealing to friends or families, the bank will allow up to four names to be added on the mortgage.
M&S Bank chief executive Sue Fox said: “We launched M&S Bank to bring the M&S brand values to banking and in line with these values we wanted to mark this key milestone in our history by supporting Shelter with the fantastic work they do in the fight to end homelessness across the UK.”
M&S mortgages have been launched at rates competitive with other big players in the market. M&S Bank is offering a two-year fixed mortgage at 2.09 per cent for buyers with a deposit or equity of 10 per cent. A five-year fixed mortgage is being offered with an interest rate of 2.59 per cent.
For buyers or home movers with a higher deposit, the lowest rate available is 1.39 per cent for people who take out a two-year tracker mortgage and put down a minimum deposit of 40 per cent.