Tesco Postpones Penetration onto UK Mortgage Market

The entrance of Tesco onto the British residential mortgage market has been delayed due to certain regulatory issues.

Let us remind that the supermarket chain initially planned to launch mortgage deals in the first quarter of 2011. Now, however, the company anticipates launching products in summer 2011, claims Tesco spokesman.

He added that Tesco finds it extremely important to develop products that are transparent, simple and customer-oriented. They will be filed to the Financial Services Authority (FSA) in November 2010 and are expected to be processed and approved within 6 months of submission.

Tesco also plans to introduce savings deals in 2011 and current accounts in 2012.

Commenting on the situation, Mr. Cornell of IFA First Action Finance said that Tesco needs not to hurry as its excellent reputation in retail sector will definitely help the company become a force in financial services industry.

It is interesting to note that Tesco is not the only company looking to open a banking business in Great Britain.