MSE News: Tesco to sell mortgages

opinions4u

Unless they have massive new capital behind them and have grown their savings book significantly they will not be in any position to become a major player in the mortgage market.

Over the last quarter of a century there have been numerous new entrants to the mortgage market and, indeed, other personal finance markets. They all disappear or get swallowed up over time. Or remain in a niche corner somewhere.

To succeed in mortgages, Tesco will need to rely on slow, steady and boring growth of their savings book. It could take a generation for them to become a top six lender.

Wouldn't be surprising to see a resurgence in building societies at a local level

I hope you're right. But I can't see it. They can't compete in the savings market.

Thrugelmir

opinions4u wrote: »

To succeed in mortgages, Tesco will need to rely on slow, steady and boring growth of their savings book. It could take a generation for them to become a top six lender.

Even longer unless they acquire an existing mortgage book.

aldredd

callum9999 wrote: »

What exactly are they waiting for before launching a current account?

From the article:
Tesco already sells loans, savings and credit cards. It plans to launch a current account but not for a while, and only when the switching process improves.

ssswww

callum9999 wrote: »

What exactly are they waiting for before launching a current account? While I'm sure the process could be greatly improved, there is nothing really wrong with the current one.

If they put decent paying-in machines at the 24 hour Tesco's I'd switch straight away.

getmore4less

ssswww wrote: »

If they put decent paying-in machines at the 24 hour Tesco's I'd switch straight away.

You can deposit money into a tesco instant access savings account at any customer service desk.

Link online to your regular current account, Credit cards.

opinions4u

Rates look broadly average. They don't appear to be pushing for rapid growth. Moreorless in line with Lloyds TSB and Halifax who aren't exactly trying to corner the market.

If I've read right all products have fees of £995 before you pay for a valuer.

Minimum deposit is 20% and the better rates need 30% equity.

1 Clubcard point for every £4 of mortgage payment. So £30 a year back if you pay £1,000 a month. They reward overpayments too.

If I was looking to borrow I'd go elsewhere.

Stephen_Leak

I've just bought a Tracker from Tesco. It came up on the receipt as a £250,000 mortgage.