Tesco is reportedly investigating expanding its current personal finance options to offer current accounts and mortgages, which would be an interesting expansion for the general public, mortgage advisors and those taking CeMAP training with a view to entering the financial industry.
Tesco Personal Finance currently offers items such as loans, savings accounts and insurance to around 5 million customers. This year, it is offering a trial in-store bank at 30 of its stores nationwide and is reportedly now investigating launching a separate bank to raise funds to offer mortgages.
Andrew Higginson is the chief executive at Tesco’s retail business and was interviewed by the Financial Times this month. In the interview, he stated Tesco was considering building a large mortgage book although it is still mulling over the idea as it means Tesco would need a separate credit rating for the personal finance division of the firm.
This change is not likely to be made overnight. Timescales estimated by Mr Higginson were around 18 months to current accounts and mortgages another six months later.
If Tesco were to enter the mortgages market, it is possible that other supermarkets may follow suit. The likes of ASDA and Sainsburys also offer insurance and loans, so who knows?
