Mortgage plans on track, says Tesco

Tesco insists it is making good progress with its plans to enter the mortgage market, despite rumours that it has delayed the launch until 2012.

In a note to investors last week, Matthew Truman, an analyst at JP Morgan Cazenove, says he expects Tesco to launch new financial products such as mortgages and current accounts in early 2012 rather than later this year because of glitches in its IT system for loans and savings products.

Truman says: “Tesco will likely hold off launching a push on credit cards and new products such as mortgages until it is entirely comfortable that its brand will not be tarnished by any future problems with the systems.”

But a spokesman for Tesco says: “We are making good progress with our mortgage launch plans. We are in the advanced stages of the regulatory process and will be in a position to provide details of the launch soon.”