Additionally, Tesco Personal Finance, the financial division of the supermarket chain, will expand into a full-blown bank according to theSun.co.uk. As a bank, they may offer current accounts alongside their existing savings, loan, credit card and insurance products.

Chief executive of Tesco’s, Sir Terry Leahy, said: “There is an opportunity to go faster with Tesco Personal Finance now and we are excited about the potential. It will become a full service retail bank and that offers huge scope for the long term.”

After recent withdrawals from nervous savers last week Tesco’s was “swamped” with business saying customers are looking for a service they can trust and a more secure bank to deposit their money.

This news followed Tesco’s half-year, pre-tax profits of £1.43 billion, an 11.3% rise. Shares also increased by 17.7p to 387.6p.

Read full article

Phil Woolas, environment minister said that those who want to invest in their homes by improving the insulation and making their heating systems much more efficient could use their house as an asset to borrow against.

Such uproar comes about following Prime Minister Gordon Brown’s £910m package to help struggling households with soaring energy bill costs. The proposal plans to see the 400,000 poorest households and pensioners offered energy-saving measures such as free loft and cavity insulation over the next 3 years.

It is said that every household in Lancashire will qualify for a grant which will cover up to 50% of the cost of new insulation. For those not eligible for free home improvements or those unable to finance 50% of the required work the environment minister said they should borrow against their home.

He said, “Loft insulations are expected to save homeowners up to £250 a year, which means the speedy repayment of any loan.”