Mortgages  

Tesco has not given a date for working with brokers

Tesco has not given a date for working with brokers

Tesco Bank has launched its first range of 95 per cent loan-to-value mortgages, but despite promises made last year, these high LTV products will not yet be available through brokers.

Earlier this year, Tesco Bank said it was planning to sell mortgages through intermediaries for the first time from 2016.

Speaking after the launch of its newest range of mortgages, a spokeswoman for the bank said it remained committed to working with intermediaries, but it was still unclear when during 2016 this would happen.

Article continues after advert

She said: “We will announce our broker proposition when it becomes available.”

Tesco Bank has made more than £1bn of loans since it started offering mortgages in 2012, but last year it revealed figures that showed more than half of Tesco customers were using brokers to get a mortgage – a proportion which the bank said has been increasing.

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

Its new range of two, three and five-year fixed-rate mortgages have no product fees and allow customers to use Clubcard points to make repayments.

Adviser view

Simon Leak, owner of London-based Executive Mortgages and Investments, said: “The more people who work through brokers the better as it makes absolute sense to get a mortgage through a broker.”