Tesco introduces mortgages to the trolley

Tesco has upped its range of financial services with the launch of mortgages.

Tesco Clubcard

The supermarket’s financial arm, Tesco Bank, will reward customers with one Clubcard point for every £4 they pay off their mortgage. 

Rates for the mortgages, which require at least a 20% deposit, start from 3.19%.

However, analysts have questioned the competitiveness of the interest rates, with several big lenders already offering fixed-rate mortgages at under 3% interest.

Tesco, which already offers loans, credit cards and insurance, is the latest retailer to attempt to increase its share of the financial market.

Marks & Spencer laid out plans in June to open 50 in-store banking branches in the UK over the next two years under the new M&S Bank brand.

Last month Asda relaunched its personal finance offering under a new name, Asda Money, and added a “cash back” credit card to its motoring, life and travel insurance products.

Tesco chief executive Philip Clarke said: “Customers want choice in banking from a brand they know and trust to deal with them fairly. The launch of Tesco Bank mortgages is a major milestone towards offering Tesco customers a full retail banking service.”

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