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Tesco Bank ceases new mortgage lending

Theo Osborn | 11:40 Tuesday 21st May 2019

Tesco Bank has announced that it has ceased new mortgage lending and is actively exploring options to sell its existing mortgage portfolio.

The bank currently serves over 23,000 customers with lending balances of £3.7bn.

The sale of its portfolio would include the complete transfer of related balances and ongoing administration of relevant accounts.

However, the bank claimed that there was no certainty that any transaction would occur as a result of it exploring options to sell its existing mortgage portfolio.

Gerry Mallon, chief executive at Tesco Bank, said: “In recent years, challenging market conditions have limited profitable growth opportunities.

“Our focus is on how we best serve Tesco customers and align our resources effectively to their needs while ensuring that our offer remains sustainable in the long term.

“To that end, we have made the strategic decision to focus on serving a broader range of customers in more specific areas, which means moving away from our mortgage offer. 

“We have, therefore, chosen to cease lending to new customers and announce our intention to explore a sale of our portfolio. 

“Our priority, in any sale, is to complete a commercially acceptable transaction with a purchaser who will continue to serve our customers well.”

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