Tesco Bank have confirmed that they will be selling their mortgage portfolio to Halifax.
A few months ago Tesco Bank announced that they were stopping new mortgage lending. After a thorough process, they have agreed to sell their mortgage book to Halifax, part of Lloyds Banking Group.
The High Street lender’s purchase of Tesco Bank’s book of more than 23,000 mortgages for £3.8bn was revealed this week. The portfolio has a lending balance of £3.7bn and generated pre-tax profit of £9.1m in 2018-19.
The deal will put the Tesco Bank mortgage customers under the Halifax brand. In news that will be welcomed by most, Halifax have also confirmed that customers will be allowed to move their mortgages to Halifax terms when their existing deal expires.
The bank have announced that existing accounts will transfer “once the necessary transitional arrangements have been delivered”. The legal title transfer is expected to take place by the end of March 2020.
Gerry Mallon, Chief Executive of Tesco Bank, said: “Our priority has been to complete a commercially acceptable transaction with a purchaser who will continue to serve our customers well.
“After a thorough process, we are pleased to confirm that we have agreed the sale of our mortgage book to Lloyds Banking Group, operating under the Halifax brand. We are confident that they will continue to provide our customers with an excellent customer experience,”
He went on to say: “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.”
Additional information for existing Tesco Bank Mortgage customers is available at www.tescobank.com/mortgages.
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