M&S introduces first mortgage range

M&S Bank has launched its first mortgage range, which includes fixed and tracker deals for those moving home or remortgaging, as well as for first-time buyers.

The bank’s homemover and remortgage deals are available to those borrowing up to 90% of the property value. Mortgages can be taken out over a maximum term of 30 years.

There is a choice of two or five-year fixed rates, or two-year tracker rates. The mortgages come with a £995 arrangement fee and a £99 booking fee, but M&S Bank also offers fee-free options at slightly higher rates.

All borrowers get a free basic property valuation, and anyone remortgaging to M&S Bank from another provider will be offered a fee-assisted legal service, which covers the cost of the standard legal work required to remortgage from another lender.

Incentives for first-time buyers

You’ll need a minimum 10% deposit to qualify for M&S Bank’s first-time buyer mortgages, which again come with a £995 arrangement fee and a £99 booking fee, unless you choose a fee-saver deal.

M&S Bank’s first-time buyer mortgages come with a free valuation and £1,000 cashback.

Cashback can make a big difference to first-time buyers, who may decide to put the money towards moving costs or furnishing their new home. Bear in mind, however, that even if cashback or other incentives appear tempting, you must always look at the overall cost of any mortgage to make sure you’ve found the best possible deal to suit your needs.

First-time buyers taking out a mortgage through M&S Bank, as well as those moving home or remortgaging, can apply with up to three other borrowers, helping those who want to own a property but perhaps wouldn’t be able to afford it on their own.

M&S says it will donate £25 to the housing and homelessness charity Shelter for every mortgage taken out.

L&C is currently the only broker offering M&S Bank’s new range of mortgages. You can see our best buy rates here.