Sainsbury’s Bank has extended its mortgage range with the launch of buy-to-let products available only through its network of brokers.
The supermarket bank, which said it has ambitions to be the number one choice in mortgages for Sainsbury’s customers, has launched products designed for those looking to purchase or remortgage.
Lending is being made available to those who hold a maximum portfolio of three buy-to-let mortgaged properties.
Sainsbury's has also launched a consumer buy-to-let product for "accidental landlords".
David Buxton, head of banking at Sainsbury’s Bank, said: "We are delighted to introduce our buy-to-let and consumer buy-to-let products as we’re keen to begin to help smaller investors and non-portfolio landlords manage their mortgage outgoings.
“We work in partnership with our broker partners and they told us that a buy to let range was important so we developed one as soon as we could, within our first year of trading.
"By creating strong partnerships, and listening to our brokers every step of the way, we’re continuing to build a strong mortgage proposition."
The various products are available across two- and five-year fixed terms. Lending is available up to £1m with a 60 per cent loan-to-value (LTV), and £500k up to 75 per cent LTV.
For purchase, Sainsbury's has a two-year fix at 60 per cent LTV with a rate of 1.49 per cent and a fee of £1,995 but this is available fee-free for 2.23 per cent.
The same length of fix is available at 75 per cent LTV for 1.88 per cent with a £1,995 fee, or fee-free for 2.61 per cent.
A five-year fix is available at 2.29 per cent for 60 per cent LTV with a £1,995 fee, or fee-free at 2.66 per cent, while at 75 per cent LTV it is available at 2.71 per cent with the fee and 3.06 per cent without.
The minimum loan amount available starts at £40,000, increasing to £1m with minimum terms starting at five years and rising to 40.
Daniel Bailey, a mortgage broker with Middleton Finance, said: "It is positive news if any buy-to-let lender comes to the market and offers more competition and more competitive rates.
"I would question whether they are bringing anything new to the market apart from rates, and whether they are offering clients anything new. There are a lot of buy-to-let lenders in the market so maybe you have to to offer something a bit different."
damian.fantato@ft.com
