Marks & Spencer is entering the mortgage market for the first time, with a new range of products aimed at first-time buyers in particular
The new products, which include £1,000 cashback for those purchasing their own home, as well as free valuation, include two and five-year fixed rate deals and two-year tracker mortgages.
The home loans are available to those with a 10 per cent deposit.
The lender is also offering terms of up to 30 years.
First-time buyer rates with £1,000 cashback include a 2.09 per cent two-year fixed rate with a fee of £995 and free valuation.
It is also possible to get the same mortgage without the fee for 2.49 per cent.
There is also a five-year fixed rate available at 2.59 per cent with a £995 fee and £1,000 cashback.
All of these deals are available for those with a minimum 10 per cent deposit.
The range also offers options for those who are remortgaging.
The two-year fixed rate mortgage, at 60 per cent loan-to-value, has a £995 fee and a rate of 1.49 per cent or 1.89 per cent without the fees.
In another move to help people onto the property ladder, M&S Bank will allow up to four borrowers to take out a mortgage together, which bosses said was ideal for a group of friends or siblings.
It will also allow those who remortgage to consider additional borrowing, with the idea that the lump sum removed could be gifted to a loved one to use towards a house deposit.
Sue Fox, chief executive of M&S Bank, said the lender has developed a range of solutions to support first-time buyers and to assist families with their desire to help loved ones make that critical first step on the property ladder.
She said: "The launch of an M&S mortgage is a major milestone for M&S Bank and I am delighted that customers will now be able to get the M&S-standard service they have come to know and expect from M&S Bank when they make the biggest and most important purchase they will ever make – their home."
Paul Dorward, mortgage adviser at Pad Financial, said the new entrant into the market should give wider choice and particularly welcomed the focus on first-time buyers.
He said: "With products like these, and the change in stamp duty, the barriers to homeownership are almost wiped away."
Andrew Hagger, personal finance commentator at Moneycomms, said the mortgages were competitive and should prove a hit with first-time buyers.
