Tesco Bank fails to guarantee selling mortgage book to an active lender

Ryan Bembridge

May 29, 2019

Tesco Bank has failed to guarantee selling its mortgage book to an active and regulated lender, This Is Money reports.

When asked by This Is Money if it could provide a guarantee, the bank instead said it will sell to an institution “who will continue to serve our customers well”.

When contacted by Mortgage Introducer, Tesco Bank said that it is right at the beginning of the sales process and therefore doesn’t want to draw a red line by ruling anything out – however the book won’t be offloaded to anyone.

Tesco said in a statement: “Our priority in any sale is to complete a commercially acceptable transaction with a purchaser who will continue to serve our customers well.

“There are no changes to customer accounts as a result of our announcement and we continue to offer a full mortgage service, including additional and new borrowing, to existing customers.

“Should a sale be confirmed, we will write to customers to explain what it means for their account.”

An open letter signed by 27 MPs called for Tesco Bank to sell its loan book to an active lender last week, in a bid to avoid issues with mortgage prisoners.

Last week Tesco Bank confirmed that it is the latest lender to stop lending, after Secure Trust Bank and Magellan pulled out of the market earlier in the year.

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