Frequently Asked Questions
Why has Sainsbury’s Bank decided to sell its mortgages?
In September 2019 we announced that we had stopped accepting new mortgage applications. Since then, the mortgage market had changed considerably. Due to this, we have made the decision to stop offering mortgages altogether. Instead, we’re focusing on our everyday banking business and further development of our credit cards, personal loans, savings, ATMs, travel money and insurance businesses across both Sainsbury’s Bank and Argos Financial Services.
Why has Sainsbury’s Bank decided to sell its mortgages to The Co-Operative Bank?
After a thorough process, we’ve agreed to transfer ownership of our mortgages to The Co-Operative Bank. We chose them as they are a well-known financial provider and are committed to excellent customer service, which is what we want for our customers.
You can find out more about The Co-Operative Bank.
When will my mortgage move to The Co-Operative Bank?
We’ll write to customers to let them know what this means, including the timing for transferring their mortgage to The Co-Operative Bank, which will come at a later date. Customers do not need to take any action directly as a result of this transaction.
Will my mortgage be affected by this sale?
No - customer’s current Terms & Conditions relating to their mortgage will remain in place. Existing customers will continue to be serviced in the same way they are today.
Fixed Rate Customers
There will be no change to Fixed Rate customers’ interest rate for the duration of their fixed rate product term.
Up until the transfer to The Co-Operative Bank completes, we’ll write to them when their Fixed Rate period ends to confirm options. After this The Co-Operative Bank will keep them informed.
Tracker Rate Customers
Tracker Rate customers’ interest rate will continue to move in line with Bank of England rate changes.
Up until the transfer to The Co-Operative Bank completes, we’ll continue to let them know of any changes to their rate and will write to them when their Tracker Rate period ends to confirm options. After this The Co-Operative Bank will keep them informed.
Standard Variable Rate Customers
Up until the transfer to The Co-Operative Bank completes, we’ll continue to let Standard Variable Rate customers know of any changes to their rate. After this The Co-Operative Bank will keep them informed.
What about my mortgage payments, will I need to do anything?
No - customers don’t have to do anything at this time. If they pay by Direct Debit, they will not have to take any action as the transfer of their Direct Debit will happen automatically. If they make their payment by any other method, again there is no action required at this time and we will write to them closer to the date of transfer with more information.
What will happen to the Nectar offer associated with my mortgage?
We have written to customers who registered their Nectar card to their mortgage and are eligible for a Nectar Reward Scheme.
Are Early Repayment Charges applied on my mortgage?
Customers can repay their loan in full or in part at any time. They may have to pay an early repayment charge and other charges if they repay some or all of their loan before the end of the mortgage term. The details of any early repayment charges are set out in their Offer.
Do I need to make my home insurer aware of this change?
If you have a mortgage with us which was taken prior to 2017, yes, you need to update your home insurer to make them aware of the change in provider from Sainsbury’s Bank to The Co-Operative bank from the date of confirmed sale (we will confirm this date to you in writing.) as per the Terms & Conditions requirements of your mortgage. If your mortgage was taken post 2017, whilst this is not a requirement under the Terms & Conditions of your mortgage, we do recommend that you keep them updated.
I’m an existing customer and want to change my mortgage product. Can I still do that?
Yes, if a customer’s current fixed rate is due to expire before legal title transfer, we will continue to support a transfer to an alternate product. Please refer to the ‘Existing Customers coming to the end of your deal’ section of our mortgage support page.
I’m an existing customer and want to increase my borrowing. Can I still do that?
No, we are not currently accepting new applications for increased borrowing.
I’m an existing customer and I am looking to move home. Can I still do that?
Any mortgages taken after 2016 are portable, providing the application and property meets lending criteria. Please contact us on 0345 111 8020 and we can discuss what options are available. We’re open 8am to 8pm, Monday to Friday, 9am to 1pm on a Saturday.
I’m an existing customer looking to move my Buy to Let mortgage to another property. Can I still do that?
No, unfortunately this is not something we can offer.
I’m an existing customer and want to change something on my mortgage. Can I still do that?
Please contact us on 0345 111 8020 and we can discuss what options are available. We’re open 8am to 8pm, Monday to Friday, 9am to 1pm on a Saturday.