Tesco to launch into mortgages in the next few months

6 February 2012 | By Natalie Thomas

The supermarket giant was due to enter the mortgage market in 2011, but announced in October 2011 that it was postponing its launch until early 2012.

When asked about its launch in an interview with The Times today, Benny Higgins, chief executive of Tesco Bank, told the paper: “We would expect to launch in the next couple of months.”

He also claimed 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.

Tesco has not yet confirmed whether the bank will offer its product through brokers.

Higgins also revealed in the interview that the bank is delaying its launch into current accounts until 2013.

It had intended to launch the products this year, but waiting until 2013 will allow it to take advantage of new rules making it easier for current account customers to switch providers.

A spokeswoman for the banks says it is taking a cautious approach to its current account offering, following glitches in its IT system for loans and savings products last year.

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