Tesco Bank is eyeing an entry into the broker market, Money Marketing sister title Mortgage Strategy can reveal.
It is understood the bank has consulted with brokers over such a move in recent months and sources say the direct-only lender could begin distributing through intermediaries by the second quarter of next year. However, it is thought Tesco has not come to a final decision.
Tesco refused to comment.
The lender made its long awaited entry into mortgages in August 2012, after a series of IT problems set its plans back by a year. At the time, Tesco said it had no plans to distribute through brokers.
The latest available figures show Tesco advanced a total of £697m in the year to 14 February.
Since the MMR came into effect on 26 April, two well-known brands have decided to distribute through brokers for the first time.
Last month, Mortgage Strategy revealed HSBC had made a shock U-turn on its distribution strategy after years of shunning the broker market. The once direct-only lender has begun distributing through Countrywide with a view to expanding its distribution in the future.
In May, The Post Office, which started selling mortgages in 2012, signed a distribution deal with Legal & General, marking its first foray into the broker market.