Planned sale of Tesco mortgage book kicks up fears of fresh ‘mortgage prisoners’

Cerberus
By Tom Brown
22 May 2019

Tesco Bank is looking to sell its £3.7bn mortgage book after announcing that it will cease new mortgage originations. The lender is exploring options to facilitate a complete transfer, but the news has drawn attention to a bill proposed in the UK parliament which would grant borrowers the ability to transfer mortgages between providers.

“In recent years, challenging market conditions have limited profitable growth opportunities,” said Gerry Mallon, chief executive at Tesco Bank. “Our focus is on how we best serve Tesco customers and align our resources effectively to their needs while ensuring that our offer remains sustainable in the long term.”

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