Tesco mortgages to reward customer loyalty
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Supermarket giant Tesco says it is on track to launch mortgages in the first half of 2011, but it has not yet applied for its Financial Services Authority permissions.
It had previously been reported that Tesco was looking to launch a range of mortgages at the end of 2010.
But in its 2010 half-year results this week, the supermarket revealed that subject to regulatory approval it anticipates launching mortgages in the first half of 2011, with current accounts to follow in the second half of 2011/12.
A spokeswoman for Tesco would not say whether the deals would exclusively be offered on a direct-only basis, but says they will be in line with the company’s ethos of rewarding loyal customers.
She says: “We plan to submit our application to the FSA in the next month and expect permissions to be granted in six months, ready for a 2011 launch.
“It is too early to say what features the products will have, but they will be consistent with the Tesco brand and be simple, transparent and reward customer loyalty.”
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Readers' comments (6)
Anonymous | 6 Oct 2010 2:17 pm
Every little helps....or does it?!?!
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Dazed & Confused | 6 Oct 2010 2:31 pm
Just think of all the clubcard points!!!
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Luke Atkinson | 6 Oct 2010 2:54 pm
Do Tesco know how long the FSA take to sign off firms??
See you in 2012.
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John Baker | 6 Oct 2010 2:58 pm
Do you think that when rates go up, and lots of houses get repossessed, they'll offer a BOGOF deal for BTL landlords?
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Compliance Man | 6 Oct 2010 4:00 pm
It will be interesting to see if Tesco get their application dealt with quicker than all the other poor old small firms who take, on avergae, 9 months to get authorised for mortgage lending!
The FSA treat this aspect as high impact, it takes 8 weeks just to start looking at it and then they start all the questions, not to mention the interview.
It would be outrageous if they got preferrential treatment that saw them get approved quicker than all the other applicants who wait months for responses.
The 6 months deadline for approval only applies to a complete application. As soon as they ask you questions to clarify issues they class it as incomplete which extends it to 12 months.
Unless they have spent a long time in pre-application discussions they are unlikely to be selling mortgages until the second half of 2011.
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Mel Samuels | 10 Nov 2010 4:32 pm
@ compliance man
I disagree this is a highly liquid company that has infrastructures already in place and a sound base from which to start so the process won't need to take 12 months at all.
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