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Asda moving into mortgage market

Asda is looking to move into the mortgage market and is conducting a tender to find a mortgage broker for outsourcing business.

Three brokers have put in offers, one of which is understood to be Mortgage Force.

Asda customers will be directed to the chosen broker for whole of market advice. It will work in a similar way to the deal that the supermarket has with Lifesearch to offer protection advice. Advice will be offered primarily over the phone.

Asda wants to offer a one-stop shop service and has been considering a move into mortgages for some time despite turbulent conditions in the market.

As well as protection, Asda offers home insurance, pet and travel insurance, savings accounts, credit cards and child trust funds. It is also considering moving into the equity release and annuity sectors in the near future.

London & Country offers mortgage advice to Tesco customers but no other supermarket offers mortgages.

Asda head of financial services Gev Lynott says: “We do not think the mortgage market is working well for many consumers. We have been looking to find a way into the mortgage market for some time but it has been difficult to get the interests of the providers, brokers and customers in line.

“We want to be able to tie it all in, the mortgage, the home insurance, the protection and anything else the customer needs. We want to be essentially a one-stop shop for a good deal.”

Mortgage Force chief executive Rob Clifford says: “We are in tender processes with five large firms.”

Savills Private Finance associate director Melanie Bien says: “It is an interesting time to move in and Asda will want a broker that is well established. It is a good opportunity for a firm wanting to work in the mass market and do lower values but higher volumes of business.”

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