Tesco Bank is laying the groundwork in order to offer mortgages through intermediaries in the first half of next year, according to its chief executive.
The supermarket’s finance arm confirmed comments made by Benny Higgins in the Telegraph, which detailed plans to enter the adviser market for the first time.
He stated that after two and a half years selling mortgages direct, Tesco is only operating in less than 10 per cent of the market. Mr Higgins said this over half of Tesco customers are buying mortgages through brokers and that figure is increasing under the Mortgage Market Review regulations.
The bank is currently working on the infrastructure required to sell through intermediaries, with launch scheduled for the first half of 2016.
Earlier this month Tesco Bank cut rates on its two, three and five-year fixed rate and two-year tracker mortgages by up to 0.5 per cent.
The deals included: 1.49 per cent for a two-year fixed 60 per cent loan-to-value, with an £800 fee; 2.29 per cent for the three-year fixed 70 per cent LTV with no product fee; and 2.79 per cent for the five-year fixed 75 per cent LTV with no product fee.
The two-year tracker was reduced to 1.75 per cent at 85 per cent LTV with £800 fee.
Last October, HSBC re-opened its doors to advisers, providing residential mortgages in partnership with Countrywide Mortgage Services.
peter.walker@ft.com
