According to a report in the Telegraph, Tesco Bank has lent over £1bn worth of home loans since it started selling mortgages two and a half years ago.
Benny Higgins, the chief executive of Tesco Bank confirmed selling through intermediaries “gives us the opportunity to increase [our mortgage business] considerably”.
He suggested its direct sales to Tesco only served a ‘modest proportion of Tesco customers’ or effectively 10% of the market.
Higgins said: “Whilst it wasn’t our intention at the very outset, it is clear to us that over half of Tesco customers are buying mortgages through brokers and that number is increasing under the new regulatory code.”
The bank is currently working on the infrastructure required to sell through intermediaries and plans to launch in the first half of 2016.
Tesco declined to comment to Mortgage Solutions.
Beleaguered supermarket Tesco is planning a cost-cutting drive which will see it suspend its dividend, close stores, and appoint a new UK CEO in a bid to reverse its fortunes.
Tesco Bank including the mortgage lending arm continued to report moderate performance, following rumours the banking arm was being considered for sale back in November.
By restructuring its central overheads, simplifying store management structures and increasing working-hour flexibility, the group said it hoped to deliver savings of around £250m per year at a one-off cost of £300m.
