MSE News

Sainsbury's Bank stops offering new mortgages – what you need to know

Sainsbury's Bank stops offering new mortgages – what you need to know

Sainsbury's Bank has announced that it has stopped offering new mortgages.

The firm, which has only been selling mortgages since 2017, offered a range of fixed-rate mortgages including two-year and five-year fixed mortgages. It's therefore possible that many of its customers are still within their fixed periods.

Sainsbury's Bank says it will continue to provide a full service to existing customers, and for now nothing will change. But it declined to rule out selling its mortgage book, as rival Tesco Bank announced it would do earlier this year, instead saying that it was "examining all options" for the future of its portfolio.

It said customers will be moved onto its standard variable rate when they reached the end of their fixed term, and will not able to remortgage to a different Sainsbury's Bank mortgage – so if you're in this situation, you'll need to swap to a new provider to get a new fixed deal. See our Remortgaging Guide for more information.

A Sainsbury's Bank spokesperson confirmed that customers who had successfully applied for a mortgage, but hadn't yet received their loan, would have their agreements honoured.

She told MoneySavingExpert.com that an increasingly competitive market and a desire to reduce costs contributed to its decision.

Sainsbury's Bank declined to say how many mortgage customers it has, but in May it announced that it had lent £1.4 billion to mortgage holders.

See our Mortgages & Homes guides for more information and our best buy tools.