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We’re selling our mortgage portfolio to Halifax

Employee

We’re selling our mortgage portfolio to Halifax

We recently let you know that we’d stopped new mortgage lending and were exploring options to sell our current portfolio. After a thorough process, we’ve agreed to sell our mortgages to Halifax.

We’re doing this so we can focus on making day-to-day banking even better, and we chose Halifax because they have a great reputation.

We’re writing to our mortgage customers to let them know what this means for them.

Additional information is available below. If you have any questions about your account please contact us on 0345 217 2050.

 

Why has Tesco Bank decided to sell off its mortgages?

The market’s changed a lot over the last few years, and we’ve made the decision to stop offering mortgages altogether. Instead, we’re going to focus on our everyday banking business. That way, we can keep giving customers across the country great value and brilliant service, day in, day out.

 

Will my rate or repayments be affected by any sale?

Fixed Rate customers

There will be no change to your interest rate for the duration of your fixed term.

Tracker Rate customers

Your interest rate will continue to move in line with Bank of England base rate changes.

Until the transfer to Halifax completes, we’ll write to you when your Fixed rate or Tracker rate period ends to confirm your options. After this Halifax will be in touch.

Standard Variable Rate customers

You don’t need to do anything right now. Until the transfer to Halifax completes, we’ll continue to contact you to let you know of any changes.

 

Will I be able to collect Tesco Clubcard points on future mortgage repayments?

Clubcard Reward

If you’ve registered your Tesco Clubcard to your mortgage account and haven’t paid off your loan in full before 27 September 2019, you’ll collect Clubcard points until that date. After that, the ability to collect Clubcard points on your mortgage repayments will end.

To say thanks for being a Tesco Bank customer, we’ll give you a gift of Clubcard points when you move over to Halifax.

You’ll see these Clubcard points appear on your quarterly Clubcard statement in November 2019. If you’re still going through the application process after 27 September 2019, you’ll see your Clubcard points appear on your February 2020 Clubcard statement.

There’s some info below on how many Clubcard points you’ll get, based on your mortgage type.

 

Existing Fixed Rate customers

Your gift is based on the Clubcard points you’d earn on your contractual monthly repayments until the end of your current Fixed Rate Period. For example, if you’ve a year left on your Fixed Term and collect 125 Clubcard points on your contractual monthly repayments*, you’ll get a one-off payment of 1,500 Clubcard points (12x125).

 

Existing Tracker Rate customers

Your gift is based on the Clubcard points you’d earn on your contractual monthly repayments until the end of your current Tracker Rate Period. For example, if you’ve a year left on your Tracker Term and collect 125 Clubcard points on your contractual monthly repayments*, you’ll get a one-off payment of 1,500 Clubcard points (12x125).   

 

Existing Standard Variable Rate customers

We’ll give you a year’s worth of Clubcard points based on your contractual monthly repayments. For example, if you’d earn 125 points each month, we’ll give you 1,500 as a one-off payment (12x125).

 

Customers currently in the Tesco Bank application process, applying for additional borrowing or switching to a new Fixed Rate product

If you’ve reached the formal offer stage, your gift will be based on what you’d earn on your contractual monthly repayments until the end of your current Fixed Rate Period. For example, if you have a 24-month Fixed Term offer and would’ve collected 125 Clubcard points on your contractual monthly repayments*, you’ll get a one-off payment of 3,000 Clubcard points (24x125). 

 

Customers with multiple components

If you have more than one component to your mortgage, your gift will be based on what you’d earn on your contractual monthly repayments until the end of your longest Fixed or Tracker Rate period and your contractual monthly repayments.  For example, if you’ve a year left on your Fixed Term component and two years left on your Tracker Rate component and collect 125 Clubcard points on your contractual monthly repayments*, you’ll get a one-off payment of 3,000 Clubcard points (24x125).

* 1 clubcard point collected for every £4 of your contractual monthly repayment

 

Are submitted applications still being processed? 

Yes, any new mortgage application submitted before Friday 24 May will continue to be processed. The process must be completed by 14 December 2019. 

 

What if I no longer wish to continue with my application?

Please get in touch on 0345 217 2050 and we’ll cancel your application. 

 

I’m an existing customer and want to change my product. Can I still do that?

Yes, we’ll continue to provide a full service to existing customers until mortgages are transferred to Halifax.  This includes term amendments, product transfers, additional borrowing, porting, and payment holidays - known as the flexible features of the mortgage in your T&Cs. We. will write to you again to let you know the date mortgages will transfer.

 

When will my mortgage move to Halifax?

We’ll write to mortgage customers to let them know what this means for them, including the timing for mortgage transfers to Halifax, which will come at a later date.

 

How can I find out more about Halifax?

You can find out more at Halifax.co.uk

Halifax is a division of Bank of Scotland plc which is part of Lloyds Banking Group.