Sources close to the situation told the FT that since Tesco bought out Royal Bank of Scotland’s 50% share in their financial services joint venture three years ago, it has experienced problems moving from RBS’s system to its own.
This is likely to hold back Tesco Bank from launching mortgages until early 2012, the sources said.
Tesco had been expected to launch its mortgage products in the summer, but is awaiting regulatory approval from the Financial Services Authority (FSA).
A spokesman for Tesco Bank, said: “We are making good progress with our mortgage launch plans. We’re confident that our initial entry into the mortgage market will see us offer a great value product with the convenience and simplicity that Tesco customers expect.
“We are in the advanced stages of the regulatory process and will be in position to provide details of the launch soon.”
