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Sainsburys Bank mortgages and the recent news
Sainsburys Bank recently reported that they are removing themselves from the mortgage market. I am aware they are honouring existing applications.
I'm currently going through a house purchase with a Sainsburys Bank offer. 5 year fixed.
This news has spooked me, however am I overreacting? I'll be switching after 5 years anyway.
Thanks
Comments
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You can't be 100% certain, but I wouldn't worry if they have confirmed they are honouring existing applications.
Most likely they will stop new mortgage issuance. Then you'll probably find that your mortgage gets sold to a different provider eventually, as it's easier than running down their book. That won't affect much during the 5yrs. Then you'll have a choice to make over new provider vs. other new providers in the market after the initial term is over.0 -
If they sell their mortgage books to another Lender all customers will get an option for a ERC free exit to a new product. Otherwise the FCA (or whoever is managing this) will not approve the sale.princeofpounds wrote: »You can't be 100% certain, but I wouldn't worry if they have confirmed they are honouring existing applications.
Most likely they will stop new mortgage issuance. Then you'll probably find that your mortgage gets sold to a different provider eventually, as it's easier than running down their book. That won't affect much during the 5yrs. Then you'll have a choice to make over new provider vs. other new providers in the market after the initial term is over.0 -
So you're good to go. The offer is still valid, and you can go forward with the purchase.Sainsburys Bank recently reported that they are removing themselves from the mortgage market. I am aware they are honouring existing applications.
I'm currently going through a house purchase with a Sainsburys Bank offer. 5 year fixed.
This news has spooked me, however am I overreacting? I'll be switching after 5 years anyway.
If your sale drags, and the offer reaches the end of its validity, you may not be able to renew it.
Once the fixed term ends, you may be stuck on a poor rate if you can't remortgage easily for whatever reason.0
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