Tesco Bank to stop offering mortgages

Tesco Bank is stopping new mortgage lending and is looking for ways to sell its existing mortgage portfolio.

The bank, which started offering mortgages in 2012, has more than 23,000 mortgage customers, who have total lending balances of £3.7bn.

There will be no impact on customers who already have mortgages, which will continue as normal for now.

However, if a sale does go ahead, then the bank would notify customers of any impact it would have on their accounts.

Any possible sale would include the transfer of related balances and the administration of relevant accounts.

Gerry Mallon, Tesco Bank’s chief executive, said: “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.

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