Sainsbury’s Bank comes to market with L&C and L&G

Ryan Bembridge

April 10, 2017

Sainsbury’s Bank has launched its mortgage offering with London & Country Mortgages and Legal & General Mortgage Club.

The bank is offering residential mortgages both direct and through the broker channel, with the bank also catering for the self-employed and lending into retirement.

Sainsbury’s said the launch is just the beginning and it will enter the buy-to-let market.

Catherine More, head of mortgages Sainsbury’s Bank, said: “Mortgages and grocery shopping are some of our customers’ biggest household expenditures and we’re uniquely placed to help them out with both.

“Our customers asked us for choice and flexibility and our product features, as well as various advice options, give them just that.”

Legal & General Mortgage Club will initially provide brokers with business support, with London & Country being its intermediary pilot partner.

Sainsbury’s is set to welcome more brokers on board in the next 12 months.

To 75% loan-to-value its 2-year fixes cost 1.34% with a £995 product fee and 1.74% with no fee, while its 5-year fix stands at 2.09% with a £995 fee.

To 90% LTV the lender’s 2-year fixes stand at 2.09% with a £995 product fee and 2.49% with no fee. Meanwhile its 5-year fix has a rate of 2.89% with a £995 product fee and its 2 year tracker is at 2.19%.

David Hollingworth, associate director of communications at London & Country Mortgages, said: “Its commitment to the intermediary channel is clear and underlines its intention to be a major mortgage brand.

“The launch of a new, significant player like Sainsbury’s Bank can only help brokers and their customers, providing greater choice to those seeking quality, good value mortgage solutions.”

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “It is great to see such a well-known brand enter the UK mortgage market, adding more choice and competitive products for the customer.

“This shows the resilience and strength of the intermediary sector, and we look forward to working closely with Sainsbury’s as they expand their range and distribution further.”

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