Tesco mortgage - do they offer remortgage for existing customers??

magdziurek

Hi Guys,

I have mortgage with Tesco and my fixed term will end in 2 years time.

Recently Tesco decided they will not offer any mortgages to new applicants. They assured that there is no change to existing customers.

I am wondering what will happen at the end of the fixed term ? Usually couple of months before end of the fixed term bank will send you a letter with another offer if you decide to stay with the same provider. Otherwise you can be on SVR or just change mortgage provider.

Does someone very recently had offer from Tesco when the fixed term is nearly to end ?? OR Tesco force customers to change providers??

Cheers

ACG

It will depend on who they sell their book of customers to.
There is talk it could end up with RBS, in which case you may find you are able to take their products.

However, it could go to anyone and so you may be stuck on the SVR rate unless you switch lenders. Worry about it in 18 months, a lot can happen between now and then.

PerfectMess

Tescos are still offering product switches we just completed one. It pops up online a few months before and you can select an option or ring them to book a phone appointment where they go through what you want and give a recommendation of which product they suggest then you can accept or not.

We took a 5 year fix and she suggested we would still be offered a product switch after this till the end of the full mortgage term.

You can extend the term as part of the switch but can’t shorten it without going through affordability.

magdziurek

Thank you for your input here ! I was worrying, that they do not offer any products after the end of the fixed term!

Did you find their offer good when compared with other lenders ?

Also do they check your credit history again when you switch ? Did you need to provide any payslips etc ?

Thanks again !

PerfectMess

No problem we were worried about it too. We could’ve got a slightly better rate by switching can’t remember exactly the difference, tescos rate was reasonable but not the best. But we haven’t owned our house for 6 months yet as we had just ported our old mortgage the month before our fix ran out.

No payslips, bank statements etc. unless you want to borrow more or shorten the term. The phone conversation is very long though give yourself a good hour or 2 if you can’t switch online.

I haven’t checked my credit report since.

MoneyGeoff

If your fixed rate expires before they sell the loan book you will be fine, you'll be able to switch products as normal.

Nobody knows what will happen after they sell the loan book. The new company may not be regulated and/or may not actively offer mortgages, in which case you could be stuck on a high SVR if you cannot remortgage with another lender.

https://www.ftadviser.com/mortgages/2019/06/06/tesco-refuses-to-commit-to-mps-demands-on-mortgage-sale/

AdmanPea

Any thoughts on whether a sale will allow customers to opt out of the fixed rate deals? I'm in a porting situation potentially and want to borrow more on top. They've indicated I can still do this but would be better if I could just start afresh without penalty!