M&S Loans Review | www.marksandspencer.com
Address: Kings Meadow, Chester, CH99 9FB.
Branding: M&S Bank Loans. AKA: M&S Loans.
FCA Licence: 153031.
From: Marks & Spencer Financial Services Plc (part of HSBC Holdings Plc).
Launched: 1985 (1884 as retailer).
Related: First Direct, HSBC.
Available: Monday to Friday (8am/9pm), Saturday (8am/7pm), Sunday (10am/6pm).
Bad Credit Considered: Fair-to-good score required.
Manage: No M&S Bank login at www.marksandspencer.com.
Offers: Personal loans.
Sums: £1000 to £25,000 (new and returning).
Terms: 12 to 84 months.
£94.88 /£1000 (12) £187.52 (24) (existing)
£95.48 /£1000 (12) £188.48 (24) (new)
£187.40 /£10,000 (12) £362.72 (24) (existing and new)
Notes: Has been named M&S Bank since 2012. This is however a HSBC product since the banking giant purchased the rights for £580 million with the agreement on a 50/50 profit share. For pricing we have displayed new and also existing above. Existing refers to credit card or current account holders. The actual cost difference is only slight on the shorter term example at 18.5% and 18.6%. Everyone gets the same competitive 3.5% rate for a 10k sum. Credit decisions are determined within 48 hours and then documents are sent out and so the time to payout can take a week or so. There is a login facility, but this is for credit card and current account activity only. Whilst we have listed the main URL, their services are promoted on the subdomain of bank.marksandspencer.com.
– Amounts: Anyone can access up to £25,000 here.
– Branches: On last count there were 29 Marks and Spencer branches. These have been popping up quickly with their first trendy store opening in Marble Arch back in 2012. Building out their network is easy enough since they already have a major high street presence (850 outlets) where they can fit these stores into with ease. They have 1300 worldwide.
– Experience: This iconic British retailer was formed in Leeds in the year 1884. They have the advantage of also entering the financial space with St Michael Financial Services in 1985. There has been a series of name changes, with the current M&S Bank name being adopted in 2012. It is important to add that HSBC controls the brand on licence. They themselves date back to 1865.
– Extra Features: The option is there to defer your repayments for 3 months.
– Operations: Support is there 7 days a week over extended times.
– Ownership: As mentioned above, the rights have been purchased, but to keep both parties happy there is an equal split on profits. In essence, this means that you are receiving the bank’s product. They are the UK’s biggest and one of the leaders on the global stage. You don’t need to be a banking customer to access their product here and it is also slightly cheaper. The payout process is however slower on this side. Elsewhere, you could also use First Direct who belong within the same family.
– Pricing: In 2016 the rate was lowered to 3.3% APR that made them the cheapest provider on the market, but as you can see this APR has now been raised to 3.5%. HSBC has not changed their APR. You don’t receive quite the same value at £1k where the rates are 18.5% (existing) and 18.6% (new).
– Profile: Marks and Spencer is one of the premier high street chains. They notably became the first British retailer to turn a pre-tax profit of £1 billion. The financials in recent years have fallen, but they remain a key market player. The experience that they have in this particular space heads back to the 1980s that you would think would be advantageous over their retailing competitors. Their products are however in much lower demand than that of Tesco.
– Terms: The repayment schedule can be spread over 7 years, although you do get an extra optional year at HSBC.
– APR at 10k was 3.6%, then 3.5%, then 3.3% and again 3.5%.