Tesco finally made its long-awaited move into mortgages.
The supermarket giant today added mortgages to its growing portfolio of financial products, with Clubcard users collecting points on their mortgage repayments.
Chief executive Philip Clarke hailed the move as a “major milestone towards offering Tesco customers a full retail banking service”.
Tesco Bank chief executive Benny Higgins added: “Entering the mortgage market is a significant step in broadening the products we offer to Tesco customers.
“With a focus on serving Tesco customers for the long-term, we will take responsible lending decisions and have developed a mortgage business to meet our customers’ needs now and into the future.
“We begin as we plan to go on – launching a product for Tesco customers designed to meet their expectations of value, customer service and reward.”
The new service offers mortgage on two, three and five-year fixed rates, as well as a two-year tracker mortgages.
Although Tesco promised simplicity and flexibility to home buyers, consumer advisers said the deals fell short of ‘best buy’ rates.
Earlier this year Tesco Bank temporarily shelved plans to offer current accounts. The service is now expected to debut in 2013.