View more on these topics

Tesco Bank quits mortgage market

Tesco-Bank-Building-700x450.jpgTesco Bank has become the latest lender to pull out of the mortgage market.

The supermarket bank will stop offering mortgage deals to new customers with immediate effect. It also confirmed it is looking for a buyer for its existing mortgage portfolio.

Tesco said this strategic review was the result of more challenging conditions in the mortgage market.

Tesco Bank chief executive Gerry Mallon says: “In recent years these market conditions have limited profitable growth opportunities.”  He adds that the bank wants to focus on products where the offer “remains sustainable in the long term”.

Tesco Bank started offering mortgages to customers in 2012. It currently has over 23,000 mortgage customers, with total lending balances of £3.7bn.

Tesco Bank initially only sold direct, but has been lending via the intermediary channel since 2016. 

Tesco Bank is not the only lender to exit the mortgage market in recent months. 

AA Mortgages stopped offering loans to new customers in March, citing difficult trading conditions. The lender blamed a “highly competitive market” for its withdrawal, but did not rule out offering mortgage deals in future, should conditions change. 

Since the start of the year specialist lenders Magellan Homeloans, Secure Trust Bank and Amicus Finance have all stopped writing new business. 

Many blamed high street lenders for offering more competitive deals to higher risk borrowers, effectively undercutting margins in more niche lending markets. Funding costs have also increased for many providers. 



British Steel on brink of collapse, reports suggest

British Steel could lapse into administration within days if an emergency government loan fails to materialise, according to reports. Sky News reports that British Steel – the second largest steel producer in Britain – is preparing for insolvency on Wednesday, with suggestions that it is becoming increasingly unlikely that funding will come through to safeguard […]

L&G, Aberdeen Standard and Baillie Gifford asked to put pressure on Amazon

Trade unions have called on some of Amazon’s leading shareholders to use their influence to fight for better working conditions. Legal & General, Baillie Gifford and Aberdeen Standard were among City heavyweights to hear presentations this month at the TUC’s head office from unions like the GMB, the Guardian reports. A dozen leading fund managers […]

LGIM announces pre-Brexit board shuffle up

Legal & General Investment Management has made three new appointments to the board of its Dublin-based European business, LGIM Managers (Europe). LGIM head of investment operations Lee Toms has been elected with immediate effect. Toms is joined by head of European institutional distribution and head of Germany, Volker Kurr, and head of finance, John Craven. […]

9 October thumbnail

Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm