Sainsbury’s Mortgages

FAQs

Sainsbury's mortgages are changing to The Co-operative Bank

Your Sainsbury’s Bank Plc mortgage has now transferred to The Co-operative Bank. This means that The Co-operative Bank is now your mortgage lender.

There will be no change to your mortgage payment. Below you'll find all the details of how the changes could affect you.

Things that will change

Your mortgage product, account number and tariff of charges

We've sent all Sainsbury's mortgage customers a letter with details of the new mortgage arrangements, including your new:

mortgage account number
mortgage product - your mortgage transfer to Co-operative Bank will not affect your existing mortgage product.
mortgage tariff of charges - you'll stay on your existing tariff for 30 days from the date of the letter, then you'll switch
mortgages one-off fees - the consent to let fee will increase to £100 and the transfer of equity fee will increase to £160.

Your mortgage payments

You must make your monthly mortgage payment by Direct Debit, so:

if you made your Sainsbury's Bank monthly payments by Direct Debit - this will continue to be the case following the change and you don't need to do anything, but the payment reference will change to COOP BANK MORTGAGE
if you do not currently pay your mortgage by Direct Debit, you'll need to set this up by giving us a call on 08000 288 288 (call charges apply).

If you are paying the standard variable rate of interest (SVR) on your Sainsbury’s mortgage

When we move your mortgage across to the Co-operative Bank, we will apply our SVR. Because our SVR is higher, we will apply a discount of 0.63% to your mortgage. This will ensure that you do not pay more interest just because your mortgage is moving.

Remember, the SVR rate can move up and down. This will mean that your mortgage payments can change.

Once your mortgage moves from Sainsbury’s you can apply to switch to a different interest rate.

If you have any other payment arrangements set up, such as overpayments by standing order or manual payment, you'll need to use the new payment details which we've included in the FAQs section below.

How we calculate your mortgage interest

To make it clear as to how interest is calculated and applied to your account, an update has been made to your terms and conditions. A brief explanation of this can be found in the below paragraph.

You will not pay more interest as result of the migration. Interest is payable monthly. The interest that you pay each month is based on the outstanding mortgage balance on your account. The amount of interest is calculated by us on on a daily basis and applied to your account on the last day of each month. This monthly amount is then charged daily, based on the number of days in that payment month.

Cladding restriction

If you had cladding restriction on your mortgage, there will no longer be any restrictions. You're now able to switch to a different buy-to-let product (not including Consumer buy-to-let). When you're ready to proceed, please call us on 08000 288 288 (call charges apply).

Credit file

Your credit file will change to reflect your mortgage lender as The Co-operative Bank p.l.c. and will show your new account number. Any additional parts to your mortgage will now be reported separately rather than as a single total balance. This change will have no adverse impact on your credit file and no search will be completed.

Data protection

Our data protection policy differs from Sainsbury's Bank's policy. Read more about how we use your personal information.

What happens to my Direct Debit?

If you make your Sainsbury's Bank monthly payments by Direct Debit, this will continue to be the case following the change and you don't need to do anything. The payment reference will change to COOP BANK MORTGAGE.

I do not currently use a Direct Debit to make my mortgage payment. What action should I take?

Direct Debit is the Bank's preferred method of payment. When you pay by Direct Debit, we can change your payment automatically if interest rates change. This will help to prevent you from falling behind with your payments or paying too much. It also means that payments will reach your mortgage account in good time.

We would like to remind you that the terms of your mortgage mean that you must use a Direct Debit to make your monthly payment and would reiterate the benefits of Direct Debit as outlined above. Please call us on 08000 288 288 to set this up (call charges apply).

Are the manual payment details changing?

Please contact us to discuss setting up a Direct Debit for your regular monthly payment. If you do need to make a manual payment, the details are changing and you will need to use the account details below:

You will need to:

change the bank details to include the new sort code and account number you use, to ensure your payment reaches us;
include your new mortgage account number as the reference.

Refer to the table below for details of the sort code and account number changes:

Overpayments*. If you would like to make a one off payment towards your mortgage, use the NEW account details	Sort code 08-93-02	Account number 97880013	Use your NEW mortgage account number as your reference number
Standing order payments. If you pay your mortgage by standing order you will need to update to the NEW account details	Sort code 08-93-02	Account number 97883405	Use your NEW mortgage account number as your reference number
Pay off Mortgage. If you have received a redemption statement and would like to pay off your mortgage you will need to use the NEW account details	Sort code 08-93-02	Account number 97883298	Use your NEW mortgage account number as your reference number
Third party payments. If a 3rd party makes a payment on your behalf such as Department for Work and Pensions (DWP) contact them to update to the NEW account details	Sort code 08-93-02	Account number 97940982	Use your NEW mortgage account number as your reference number

* If you want to set up a regular overpayment, please contact us on 08000 288 288 and we will arrange this for you.

Fraud safety tips

We know that changes like this can make you worry about fraud and getting scammed. Here are some tips that could help you stay safe:

Never click on website links or enter any personal data on websites that ask you to share any personal or financial information.
Remember that we will never ask you to move your money into another account to keep it safe.
Never download anything that enables other people to access your devices remotely.
If you believe you’re being targeted or have been a victim of a scam, call our Fraud line on 159 to report it to us.

Your home may be repossessed if you do not keep up with repayments on your mortgage.

What makes us ethical?

It’s our values and ethics that really set us apart as a bank — and it always has been, since 1872. With a customer-led Ethical Policy, we give you a say in how your money is used, as well as standing up for the causes that matter to you and our colleagues.

Because unlike a lot of banks, we don’t finance the production or extraction of fossil fuels, fund logging in the Amazon, or do business with organisations that fail to implement basic human rights.

Your money has power. And putting it in the right place can make all the difference.

Learn more about what makes us ethical

Financial Services Compensation Scheme

Your eligible deposits held by a UK establishment of The Co-operative Bank p.l.c. are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with The Co-operative Bank and smile. Any total deposits you hold above the limit between these brands are unlikely to be covered.

Please read further information on the FSCS scheme here or visit their website.