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Tesco to launch mortgage products by year-end

Tesco Bank has confirmed plans to launch a range of mortgages by the end of the year.

It aims to introduce mortgages and savings products first, with current accounts launched in 2011. It has also secured two sites in Glasgow and Newcastle that will be used to deliver banking and insurance services.

Tesco Bank, which rebranded from Tesco Personal Finance last October, operates in-store branches at six Tesco supermarkets.

A spokeswoman for Tesco Bank says there are no plans to expand this service.

She says: “We don’t have a time-scale for further launches. We are asking customers what they think of the branches to help us shape our future proposition.”

She is keen to stress that Tesco Bank is not offering financial advice through the in-store branches.

She adds: “Staff are available to talk to clients about our products but they are not financial advisers.”

Tesco’s long-term aim is said to be a 10% share of Britain’s financial services market.

Tesco’s annual results show that Tesco Bank made an £114m pre-tax profit in the year to end of February.

Robert Winfield, managing director at Chartwell Funding, says Tesco’s foray into the mortgage market is not a threat.

He says: “Obviously Tesco will look to offer mortgages just to its customers. It will be business as usual for brokers.”

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