0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

Tesco Bank to pull out of mortgage market

Tesco Bank has announced that it has ceased new mortgage lending and is actively exploring options to sell its existing mortgage portfolio.

The bank, which started offering mortgages in 2012, has more than 23,000 mortgage customers, who have total lending balances of £3.7bn. Any sale would involve the complete transfer of related balances and ongoing administration of relevant accounts, it said.

 

Tesco Bank stressed that there is no certainty that any transaction will result from its exploration of options to sell its existing mortgage portfolio.

 

There will be no impact on customers who already have mortgages, Tesco Bank said.

 

Gerry Mallon, chief executive of Tesco Bank, said: “In recent years, challenging market conditions have limited profitable growth opportunities. Our focus is on how we best serve Tesco customers and align our resources effectively to their needs while ensuring that our offer remains sustainable in the long term.

 

“To that end, we have made the strategic decision to focus on serving a broader range of customers in more specific areas, which means moving away from our mortgage offer. We have therefore chosen to cease lending to new customers and announce our intention to explore a sale of our portfolio. Our priority in any sale, is to complete a commercially acceptable transaction with a purchaser who will continue to serve our customers well.”

Share on LinkedInShare on TwittereCard
Add New Comment
LoginRegister

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Pawnbroker Ablemarle & Bond Herbert Brown ceases trading

Pawnbroker Ablemarle & Bond Herbert Brown ceases trading

Ovo set to become UK’s second-largest energy supplier after £500m SSE deal

Ovo set to become UK’s second-largest energy supplier after £500m SSE deal

Phillips & Cohen expands into German market

Phillips & Cohen expands into German market

Upcoming events

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group