Sainsburys Bank today announced that they were to immediately stop new mortgage sales which they currently offer under their Sainsbury’s Mortgage banner.
In a Q2 trading statement, the Bank revealed the news as part of a five-year plan which will also see 55 branches close.
The news comes just a few months after Tesco Bank announced they were stopping mortgage lending.
David Buxton, Head of Banking at Sainsbury’s, said: “I am writing this morning to advise that, following a strategic review of Sainsbury’s Bank, we have taken the decision to withdraw from the mortgage market.
This means that, with immediate effect, we will no longer be open for new mortgage applications. Our existing customers’ contracts will not be impacted by this news and we will of course honour any customers currently in the application process.”
Sainsbury’s mortgage offering has only been around for 2 years. Since then, the mortgage market has become increasingly competitive. It would be no surprise if we see more lenders whose mortgage offering is not their core business pulling out of the market.
The full article regarding the Second Quarter Trading Statement can be read on the Sainsbury’s site.
What will happen with my Sainsbury’s mortgage?
Although Sainsbury’s are no longer accepting new Mortgage applications, they are still processing existing applications.
This means that if you are in receipt of a formal Mortgage offer from them, then this will complete as per the conditions contained within the offer.
If you have submitted an application and have not yet received a Sainsbury’s mortgage offer then subject to their standard checks being satisfied and a successful valuation on the property being completed a formal offer will be issued.
I already have a Sainsbury’s mortgage – What happens now?
If you are an existing Sainbury’s customer and have a mortgage in place, nothing will change for you. When your Sainsbury’s mortgage is up for review (normally at the end of a fixed-rate period), you’ll want to look at remortgaging.
Thanks to the FCA’s new rules around mortgage prisoners, you may also be able to change your mortgage even if Sainsbury’s won’t offer you a new deal.
If you have missed out on applying for a Sainsbury’s mortgage or are looking to improve the mortgage you have and want advice on the best mortgage available to you, contact Dan The Mortgage Man now.
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