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Tesco Bank eyes entry into the broker market

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.

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There is one comment at the moment, we would love to hear your opinion too.

  1. Michael.White.BoutiqueCapital - Bridging Loans 21st October 2014 at 4:27 pm

    I understand there might be an additional incentive of 1000 Tesco ClubCard points for each approved loan……..

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