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| Version 1 | Version 2 |
|---|---|
| Tesco Bank to pull out of mortgage market | Tesco Bank to pull out of mortgage market |
| (about 1 hour later) | |
| Tesco Bank is stopping new mortgage lending and is looking for ways to sell its existing mortgage portfolio. | 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. | The bank, which started offering mortgages in 2012, has more than 23,000 mortgage customers, who have total lending balances of £3.7bn. |
| Tesco Bank chief Gerry Mallon said: "In recent years, challenging market conditions have limited profitable growth opportunities." | Tesco Bank chief Gerry Mallon said: "In recent years, challenging market conditions have limited profitable growth opportunities." |
| There will be no impact on customers who already have mortgages. | There will be no impact on customers who already have mortgages. |
| These will continue as normal for now, but if a sale does go ahead, then the bank will notify customers of any impact it will have on their accounts. | These will continue as normal for now, but if a sale does go ahead, then the bank will notify customers of any impact it will have on their accounts. |
| Any possible sale would include the transfer of related balances and the administration of relevant accounts. | Any possible sale would include the transfer of related balances and the administration of relevant accounts. |
| Mr Mallon added: "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. | Mr Mallon added: "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." | "Our priority in any sale, is to complete a commercially acceptable transaction with a purchaser who will continue to serve our customers well." |
| A number of supermarkets have moved into offering a range of financial services in recent times. | |
| Some, including Tesco and Sainsbury's, were seen as potential challengers to the foothold of the major UK High Street banks - not least owing to the convenience they could offer. | |
| However, strict regulation in the mortgage market, and the emergence of other app-based banks in the current account sector, has diluted this picture of supermarkets being as important in banking as they are in groceries. |