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Every Little Helps.... Tesco launches Mortgage lending

BENNY Higgins, the chief executive of Tesco Bank, yesterday outlined key planks of the bank’s strategy as it prepares to launch its long-awaited move into mortgages.

Speaking to The Scotsman, Higgins confirmed that the supermarket-owned bank would bring out its mortgage product in a “couple of months”.

Higgins said the Edinburgh-based bank’s mortgages will primarily be funded by deposits, but it would also access the wholesale markets.
http://www.scotsman.com/business/banking/benny_higgins_tesco_mortgages_will_be_on_shelves_in_a_couple_of_months_1_2105740
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

Belief in myths allows the comfort of opinion without the discomfort of thought.”

-- President John F. Kennedy”
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Comments

  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Wonder if you get clubcard points!
  • Would be better really if Tesco went into the house building business.

    Think what they could do with a value range of houses in the current climate.
  • Would be better really if Tesco went into the house building business.

    Think what they could do with a value range of houses in the current climate.

    Well they'd have to build them AND provide the mortgages...

    After all it's primarily the lack of mortgage funding which is causing the record low building levels.

    Builders won't build what they can't sell.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”

    -- President John F. Kennedy”
  • Pobby
    Pobby Posts: 5,438 Forumite
    Out and about my way. Tons up for sale and loads being built. Not sure what is going on.
  • oldvicar
    oldvicar Posts: 1,088 Forumite
    edited 10 February 2012 at 3:31AM
    Wonder if you get clubcard points!

    I expect so - you do with other Tesco Personal Finance products. :j

    From the Scotsman article:
    The bank’s “rewards for loyalty” are expected to be extended to the bank’s mortgage customers.
    “Last year we returned £100m worth of club card points into the pockets of Tesco Bank customers.
    “It is a way of saying thank you and a way of rewarding their loyalty for using our products,” said Higgins.
    He added: “The mortgage product will have all the hallmarks of what we are trying to set out to do running the business, which is transparency and rewards for loyalty.”
  • DaddyBear
    DaddyBear Posts: 1,208 Forumite
    oldvicar wrote: »
    I expect so - you do with other Tesco Personal Finance products. :j

    From the Scotsman article:

    Bloody hell. You could eat out a pizza express and Ask for the rest of your life!!!!
  • Pimperne1
    Pimperne1 Posts: 2,177 Forumite
    Pobby wrote: »
    Out and about my way. Tons up for sale and loads being built. Not sure what is going on.

    Your way must be the part of the country where the very few houses are being built then. Good news for FTBs and potential homeowners out there then.

    Back to topic - could this be the start of the mortgage war?
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Pimperne1 wrote: »

    Back to topic - could this be the start of the mortgage war?

    Unlikely. Tesco are very middle of the road on all of their finance products. Be that credit cards or savings accounts. Tesco are never table topping offers.

    They do have a brand name however that "normal folk" relate to.
  • oldvicar
    oldvicar Posts: 1,088 Forumite
    DaddyBear wrote: »
    Bloody hell. You could eat out a pizza express and Ask for the rest of your life!!!!

    Doubt it. In round numbers take a £100K mortgage at 5% - thats £5K interest per year. Pay 1 point per £4 spend (like on the credit card), that makes a "reward" of £12.50 per year on your mortgage - enough to trade for about 5 pizzas.

    Even if more generous at say one point per £1, you won't get fat ... especially with the legere option :D
  • chewmylegoff
    chewmylegoff Posts: 11,469 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    oldvicar wrote: »
    Doubt it. In round numbers take a £100K mortgage at 5% - thats £5K interest per year. Pay 1 point per £4 spend (like on the credit card), that makes a "reward" of £12.50 per year on your mortgage - enough to trade for about 5 pizzas.

    Even if more generous at say one point per £1, you won't get fat ... especially with the legere option :D

    Might be some BOGOF value to be had though.
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