Tesco to start selling mortgages through brokers

Tesco to start selling mortgages through brokers

Tesco Bank is planning to sell mortgages through intermediaries for the first time.

The bank, which has made more than £1bn of loans since it started offering mortgages in 2012, is planning to expand its business by using brokers starting early next year.

A spokesman for Tesco said: “Over half of Tesco customers are buying mortgages through brokers and that number is increasing.

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“We are currently working on the infrastructure required to sell mortgages through intermediaries, and we plan to launch in the first half of next year.”

Tesco Bank was founded in 1997 as a joint venture with Royal Bank of Scotland but is now wholly owned by the supermarket chain.

Unlike the supermarket arm of the company the bank is performing well, with profits increasing by 1.6 per cent in 2013/14 to £194m.

Adviser view

Nick Thompson, mortgage associate at Midlands-based Matrix Capital, said: “Anything that expands the marketplace is good and if as intermediaries we can offer as much of the market as possible then that’s got to be good for the customer.”