You’ll be able to get a mortgage from Marks & Spencer next year – but will it be any good?
M&S said the range will be targeted both first-time buyers and home movers with "competitive" rates across a range of terms
IN addition to their posh ready-meals, shoppers will soon be able to buy a house with Marks and Spencer.
M&S Bank, owned by HSBC, today announced plans to launch its first mortgage products early next year, subject to approval from regulators.
While we don't yet know what the rates will be like, M&S said the range will be targeted at both first-time buyers and home movers with "competitive" rates across a range of terms.
Full details will be available in the new year.
Many of the best mortgage rates have been chopped recently, with lenders warning more will disappear if interest rates rise in November.
So, M&S will have to pull some decent deals out of the bag to compete with existing lenders.
She added that it'll be interesting to see if the firms offers perks to their current customers to get people on board once the services launches.
Considering it is too early to say what the rates will be like, she added: "It is still incredibly important that you don’t just choose your provider out of brand loyalty and shop around for the best deal for you.
In fact, ,any of the best mortgage rates have been chopped recently, with lenders warning more will disappear if interest rates rise in November.
So, M&S will have to pull some decent deals out of the bag to compete with existing lenders.
PROPERTY JUNGLE What do first-time buyers need to look for in a mortgage?
Andrew Hagger from said that if M&S offers similar mortgage pricing to its supermarket rivals like Tesco Bank and Sainsbury's Bank then it won't be far away from the top of the best but he added that offering competitive rates is key.
He said: "It's good news for consumers that another big trusted brand will soon be entering the market - let's hope the mortgages are as good value as its personal loans and credit cards."
David Hollingworth, associate director at L&C Mortgages, said that today's borrowers will happily take to new brands.
He added: "Challengers like Aldermore, Metro and more recently Atom Bank, are all established brands in the market. Big high street brands have already shown that they have a place as well with Tesco Bank, and more recently Sainsbury’s Bank successfully competing in the mortgage market.”
How to get help buying a house
THERE are several government schemes available to help you get on the housing ladder.
- Help to Buy loan: This scheme is for those who have a 5 per cent deposit, and is only available on new-build properties that are worth less than £600,000. The government lends you up to 20 per cent of the property value (interest-free for the first five years) which gives you access to cheaper mortgages. You will need to pay this back at the end of the mortgage or when you sell.
- Starter Homes: First-time buyers under the age of 40 can access this new scheme. You’ll get a 20 per cent discount on the market value of the property (new-build only) but you cannot sell or let the property for five years after you buy it.Shared ownership: This scheme is available to non-homeowners who earn £80,000 a year or less (£90,000 in London). People can buy a share of a home from a housing association and continue to rent the remainder. Buyers will need a ten per cent deposit as well as money to cover stamp duty and other fees. You’ll also need to find a mortgage lender that is willing to lend on shared ownership properties
Buying a house on your own means you need to have the income to secure a mortgage.
Lenders typically only allow customers to borrow up to four times their income.
We previously reported that there is now a tool to help buyers find out which mortgages they are more likely to be accepted for.
Meanwhile, single girl Louise Blissett who bought a £130,000 flat with just a £10,000 deposit shared her tips on how you could do it too.
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