iNews (21/05/2019) – Tesco Bank is to sell off its mortgage portfolio in a move which could affect more than 23,000 customers.
The bank announced today that it had ceased new mortgage lending and was actively exploring options to sell its existing portfolio, which has total lending balances of £3.7bn.
Chief executive Gerry Mallon blamed recent challenging market conditions and said the change was part of a strategic decision to “focus on serving a broader range of customers in more specific areas”.
What should borrowers do?
Borrowers with a Tesco mortgage are being urged to hold fire following today’s announcement.
Until the bank is sold it is unlikely to accept any new business and it is also unlikely to be launching any new mortgage products.
Ricky Chan, a chartered financial planner, said borrowers on SVR would normally be able to switch without penalty. “In any case, no one should stay on SVRs anyway as they’re generally very high rates dictated by the lender.”
Full article link: https://inews.co.uk/inews-lifestyle/money/tesco-bank-pulls-out-of-the-mortgage-market-heres-what-it-means-501660
