Tesco is unlikely to be a threat, brokers told
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Mortgage brokers have been told not to fear retail giant Tesco’s foray into the property market.
Last week Spicerhaart revealed that it has teamed up with Tesco to launch iSold.com, an online estate agency that offers to market properties for £999.
But Fahim Antoniades, group director at Mortgage Centre IFA, says that if Tesco takes a similar approach if it launches into the mortgage market it will not pose a serious threat to brokers.
He says: “Tesco is a threat at a basic level but any broker who can offer advice on complicated subjects should not be worried.
“I doubt its entry will stop consumers wanting to speak to advisers.
He adds: “I imagine that if it decides to get into mortgages it will want to partner with a firm that can deal with cases on a big scale.”
A spokeswoman for Tesco, says: “In terms of our mortgage plans, we are currently looking at mortgages. However, we don’t have a timescale for launch or details of how a Tesco mortgage would look at this stage.”
Tesco will market the iSold.com website to customers in its stores but the commercial arrangements of the deal have not been revealed.
Tesco briefly entered the online property sector in 2007 with the launch of Tesco Property Market. Soon after it was sold to Spicerhaart.
Readers' comments (2)
Jenny Taylier | 10 Mar 2010 7:50 pm
False hopes. If Tesco applies the same clout and logic that is does to the retail market elsewhere, everyone should be worried. The prospect of a fixed £999 fee launched off a powerful web shop window will potentially change the estate agency market forever - it was only a matter of time that there was a 'threat' web service rather than a complementary one (e.g Rightmove). As the MP3 generation look to buy property, they will find the Tesco site as a first stop. In turn, Tescos will do tie ups with advisors and providers - the world as we know it could change forever. I would not be so complacent.
JT
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1234 | 11 Mar 2010 11:33 am
Have to agree with the above. Tesco are a massive force and as a very early part of the MP3 generation I shop mainly online.
Also as somebody who has worked as an estate agent for 3 hellish weeks, my experience was to get as many viewings as possible, wether or not the property was right for the buyer.
As the children of the 90`s are coming to buying their first home, their first route will be online. Why bother dragging around possibly unsuitable properties when its possible to view hundreds in the same period of time at your choosing.
As for the articles comments regarding brokers not worrying if they can advise on complicated subjects, they are clearly very out of touch! Anyone with a slight internet savvi can use an online comparrison site, find a deal they think is the best for them (nearly always by price) and then just apply. The lenders will be more than happy to support any small quries these people have.
It sounds like if the brokers are willing to take all the cases that falls outside the high streets criteria then thats where we come into play, almost feels like you are walking behind the horse with a bag and shovel.
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