The Tesco Bank mortgage range became available to customers from Monday. It includes flexible fixed rate and tracker products with a twist – mortgage holders will be able to collect Clubcard points as they repay the loan.
Benny Higgins, chief executive of Tesco Bank, said: "Entering the mortgage market is a significant step in broadening the products we offer to Tesco customers. With a focus on serving Tesco customers for the long term, we will take responsible lending decisions and have developed a mortgage business to meet our customers' needs, now and into the future.
"We begin as we plan to go on - launching a product for Tesco customers designed to meet their expectations of value, customer service and reward."
Chief executive of Tesco, Philip Clarke, added: "Customers want choice in banking from a brand they know and trust to deal with them fairly. The launch of Tesco Bank mortgages is a major milestone towards offering Tesco customers a full retail banking service.”
The CML said: "We are delighted to welcome as full members a new lender with a strong retail brand, which will help reinforce diversity and competition in the UK mortgage market. We look forward to working constructively with Tesco Bank as it takes the next steps on its mortgage journey."
The CML currently now has 111 members and 85 associates.
