Tesco tight-lipped on its mortgage distribution
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Tesco Bank says it is too early to say whether it will use brokers to distribute its products when it launches into the mortgage market.
The supermarket giant revealed last week that it is on track to offer its first mortgage within a few months.
But a spokesman for the would-be lender says it cannot disclose details of what its products or distribution will be.
It was due to enter the market in 2011, but announced in October last year that it was postponing its launch until early 2012.
When asked about its launch in an interview with The Times last week, Benny Higgins, chief executive of Tesco Bank, told the newspaper: “We would expect to launch in the next couple of months.”
He also claims the bank has a good relationship with the Financial Services Authority and its delay into the market was not because of issues with the regulator.
Higgins also says that the bank is delaying its current accounts launch until 2013. It had intended to launch the products this year, but waiting until 2013 allows it to take advantage of new rules making it easier for current account customers to switch providers.
The bank says it is taking a cautious approach to its current account offering after glitches in its IT system for loans and savings products caused problems last year.
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