Tesco Mortgages – Does Every Little Help?

The supermarket giant already offers a range of financial services via the Tesco Bank branch of what is quickly becoming a very big tree, but now another shoot comes off that branch in the form of Tesco Mortgages.

Along with a relatively competitive 3.19%, Tesco feel that they can get a fair share of the market down to the amount of banking and financial customers that they already have that they feel would prefer to use a service they know and trust in the future, even when buying a home.

Many financial experts though are wondering if Tesco's profile will be enough to offer them a share of the market, as many other mortgage lenders offer less than 3% interest, so by pitching higher than this, are Tesco going to offer anything more? Apart from a small bonus of gaining Clubcard points when customers pay off more of their mortgage… seemingly not.

Along with M&S and ASDA both opening financial services now, Tesco looks to be taking one step further to stay ahead of the game and ahead of the other ever expanding supermarkets. Philip Clarke, the Tesco chief executive explains that, unlike the other supermarket financial services, Tesco aims to offer customers a full retail banking service, which now along with their credit cards and loan services the mortgage service means this is almost a reality. This may seem like a monopoly of the financial market as well as the supermarket game, but much in the same way that Google offers several services that can be linked for ease of use overall, it looks as though Tesco may be doing the same.

Many customers get their credit cards, loans and mortgages through the banks that they bank with, so why shouldn't Tesco offer all of the services that other high street banks do?

Written by Jason John Mills