We have stopped new mortgage lending and are exploring a sale of our mortgage portfolio. If you are an existing mortgage customer your account is not affected at this time and you do not need to take any action.
We will write to all customers advising them of any sale, and what it means for them, once it has been agreed.
Additional information is available below. If you have any questions about your account please contact us on 0345 217 2050.
Why have you decided to stop new mortgage lending and sell your mortgage portfolio?
In recent years, challenging market conditions have limited profitable growth opportunities. During this period we have continued to offer customers some of the most competitive mortgage rates available.
Our focus as a business is on how we best serve Tesco customers, therefore we have made this decision to cease lending to new customers while we explore a sale of our mortgage portfolio. Our priority in any sale, is to complete a commercially acceptable transaction with a purchaser who will continue to serve our customers well.
Will my rate or repayments be affected by any sale?
No. Your repayments will not change.
Will I still continue to collect Clubcard points on my repayments?
You will continue to collect Clubcard points while your mortgage is managed by Tesco Bank. We will write to you with further information as a sale is confirmed outlining any changes to your Clubcard benefits.
Will my Standard Variable Rate change?
We have no plans to change our Standard Variable Rate.
When will the sale take place?
We are exploring the possibility of a sale with a number of interested parties. Any sale is yet to be confirmed. Once any sale has been agreed, we will write to all of our mortgage customers to explain when it will take place, and when mortgage accounts will transfer to the buyer.
I have recently been approved for a Tesco Bank mortgage. Will my application continue to be processed?
All applications must reach Offer in Principle and have paid a product fee by Friday 24th May 2019 and reach Formal Offer by Friday 14th June 2019.
What if I no longer wish to continue with my application?
Please contact us and we can cancel your application.
I am an existing customer and I wish to change my product. Can I still do so?
Yes, we will continue to provide a full service to existing customers. This includes term amendments, product transfers, additional borrowing, porting, and payment holidays - known as the flexible features of the mortgage in your T&Cs.
Hi @George18, thanks for getting in touch. Existing customers can still do everything they wished to before, including term amendments; product transfers; additional borrowing; porting; payment holidays. This is known as the flexible features in your mortgage in their T&Cs.
Disappointment is a bit of an understatement isn't it?? I just very recently locked myself into five years fixed with Tesco, and if you won't lend an additional mortgage alongside porting, that means I can basically never move house without paying a very significant early redemption charge. If you are not going to do new lending then you should at least give customers a way out.