Sainsbury’s Bank is to launch a new range of mortgage products in the first half of next year, 12 years after it left the market.
The Edinburgh-based bank will be able to market its new product range to 1.7 million existing customers and will also sell through IFAs.
The move follows what the bank describes as "continued strong trading performance".
In a prepared statement, Peter Griffiths, chief executive of Sainsbury’s Bank, said the bank would design a range of mortgage products "especially for the Sainsbury’s customer."
Details of the mortgages will be made available through Sainsbury's stores and the bank will utilise knowledge of customers from access to the database of rewards card provider Nectar.
A spokesperson for the bank said the timing of the launch was based on extensive research it had carried out of its customers and the marketplace.
Sainsbury's was the first supermarket brand to enter the mortgages market in 1997, but it pulled out in 2004 to focus on selling insurance.
At the time Sainsbury's Bank was half owned by the Bank of Scotland, but in 2014 this half-share was bought out by Sainsbury's.
Ahead of the launch Sainsbury's Bank has appointed Computershare Loan Services to provide it with mortgage administration services.
Computershare Loan Services includes Homeloan Management Limited; the UK’s highest-rated third party mortgage servicer, which was acquired by Computershare in November 2014.
Sainsbury's Bank is currently recruiting an assistant relationship manager on a 12-month fixed term contract to support such supplier relationships.
Anthony Badaloo, principal at Church Hill Finance, said the move was good news for customers and advisers for the extra choice it would provide.
He said the potential for the mortgages to earn Nectar points would appeal, but he also said there was an opportunity in the market for a mortgage provider to help 'mortgage prisoners' obtain new more affordable deals.
