Tesco revealed its mortgage plans in its interim results for 2010/11, adding that current accounts will be launched after mortgages in the second half of 2011/12 as part of its strategy to become a full service bank.
Tesco Bank previously announced it would launch its first range of mortgages by the end of this year, but reports surfaced that regulatory red tape could delay the launch by 12 months.
Nevertheless, a Tesco spokesperson said: “We plan to submit our proposals to the FSA next month – there has been no change to the FSA process and we expect permission to launch mortgages to be granted within six months of submitting our request.
“We’re making good progress in the development of other new product launches, including current accounts. These will be submitted to the FSA in keeping with their existing processes.”
Tesco Bank posted a good performance for the 26 weeks to 28 August 2010, with gross profits up 11.7% to £401m, trading profit up 12.2% to £129m and profit before tax leaping 92.5% to £102m.
It also grew the number of customer accounts it has by more than 200,000 to 6.5m across all products.
