Mis-sold Mortgage Claims > Mortgage News
Mortgages from Tesco attracts a mixed reaction from experts
Wed, 04 May 2011
The news that Tesco is to finally to launch its mortgage proposition to the UK market later this year, has been seen as both a threat and good news for the sector. There have been mixed comments from leading industry experts.

It was reported in April 2010 that Tesco had planned to launch its own mortgage business in 2011. It has now been confirmed that Tesco is "well placed" to achieve this goal in the summer. The strength of the company’s brand and its loyal customers, in particular its Clubcard loyalty scheme, offers a good platform from which to attract new borrowers.

Roger Morris, head of sales at Precise Mortgages commented, "I do think Tesco will get some traction in the market and brokers should be worried about any new entrants, particularity one like Tesco because it is good at keeping in touch with its customers and knowing what they want." He adds, "But consumers do value face-to-face advice." This is a view shared by many as the underlying value in receiving a choice from a wider market from mortgage brokers or IFAs .

David Copland, chief executive of Pink Home Loans draws attention to the threat of Tesco’s brand and Clubcard scheme saying, "You’ve got to be concerned about such a big brand coming into the market. Tesco has one of the strongest marketing databases, gained from its Clubcard scheme, so it will target high het worth individuals who would usually go for advised sales.
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