Tesco launches mortgage range

Tesco launches mortgage range

In its latest foray into banking, supermarket giant Tesco has begun offering mortgages, letting customers earn loyalty points on repayments.

Tesco Bank is offering home loans to people with deposits of 20% or more, from a range of fixed rate options and a two-year base rate tracker.

Tesco Clubcard holders will be rewarded with points as they repay their mortgage, collecting one point for every £4 on their monthly repayments.

According to the Sunday Times, the retail giant is also planning to use shopping data to assess customers' suitability for the loans.

Benny Higgins, chief executive, Tesco Bank, says: "Entering the mortgage market is a significant step in broadening the products we offer to Tesco customers."

Tesco bought out its financial partner RBS in late 2008 and has been gradually building up into a full-service bank since, using its might to pick up customers from high street players.

However, it has still not introduced a current account, deciding to hold back until next year when an industry-wide account-switching system launches.

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