Tesco’s, the ubiquitous supermarket chain, has revealed it wants in on the mortgage market. Due to the home loans shortage, Tesco has seen a gap in the market and wants in on the action.
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.
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