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Tesco Bank launches mortgages

Tesco will make a new foray into personal finance as Tesco Bank enters into the mortgage market.

The supermarket giant announced that from today it will offer 2, 3 and 5-year fixed-rate mortgages and a 2-year tracker mortgage, with a minimum deposit of 20% for all.

Adding to its range of personal banking products, Tesco hope to offer straightforward and flexible mortgages as they enter a market of well established competitors.

Their rates start at 3.19% for fixed rate mortgages, which suggests that the lender is not looking to cause controversy amongst other competitors, with RBS group, Nationwide, Santander and HSBC all cutting their fixed-rates to below 3%.

Capitalising on their established customer base, Tesco Clubcard holders will benefit from earning points by making repayments.

As the UK’s largest supermarket bank, Tesco Bank mortgages will not run through intermediaries and will only be available online and over the phone.

Philip Clarke, Chief Executive, Tesco said: “Customers want choice in banking from a brand they know and trust to deal with them fairly. The launch of Tesco Bank mortgages is a major milestone towards offering Tesco customers a full retail banking service.”

The CEO of Tesco Bank, Benny Higgins, said this was a “significant step” for the lender.

He said: “With a focus on serving Tesco customers for the long-term, we will take responsible lending decisions and have developed a mortgage business to meet our customers’ needs now and into the future.”

Image by Gene Hunt

This was posted in Bdaily's Members' News section by Miranda Dobson .