Tesco Bank takes on high street lenders with new mortgage broker offer

Tesco's banking arm has set out plans to increase its lending by offering mortgages through independent brokers.

The supermarket chain’s Tesco Bank subsidiary has made its mortgage range available through London and Country mortgage brokers initially and will expand this into a range of other brokers via Legal & General in coming weeks.

Benny Higgins, the bank's chief executive, said broker market competition has increased since the introduction of the Mortgage Market Review in 2014.

“The vast majority of Tesco customers select their mortgage through a broker and our platform has been specifically designed to help brokers provide a great service to customers remortgaging or purchasing their home,” he said.

David Hollingworth, associate director at L&C, added: “We are confident that their broad range of sharply priced mortgages will appeal to customers and advisers alike.”

The mortgages will be offered under the name of Tesco Mortgage Intermediaries, with the brokers expected to offer the loans including Nouveau Group, Mortgage Advice Bureau, John Charcol and Stonebridge.