Tesco mortgages only a year away

Tesco mortgages only a year away

Tesco could be offering mortgages at the supermarket checkout a year from now.

The retail giant announced its intention to expand its personal finance business back in July, when it unveiled plans to become sole owner of Tesco Personal Finance and buy out 50/50 joint venture partner, Royal Bank of Scotland, for £950 million.

After reporting an 11.3% rise in profits, to £1.4 billion, in the six months to the end of June, the retailer has confirmed its intention to expand into mortgages.

Chief executive, Sir Terry Leahy, believes the economic downturn offers an excellent opportunity for Tesco to launch as a retail bank and finance director, Andrew Higginson, says that customers are looking for a service they can trust.

He is hopeful that a return to more rational pricing in the mortgage market will provide the opportunity to launch a home loan business, maybe a year from now.

Tesco Personal Finance currently has around five million customers across the UK, Ireland, Hungary and Poland.

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