Skip navigation

Gloucestershire Business News

Tesco sells mortgage arm to Lloyds

Tesco Bank has sold its mortgage business to Lloyds Banking Group for £3.8bn, with 23,000 customers set to switch to a new provider.

The retail giant stopped mortgage lending in May. It said the portfolio made pre-tax profits of £9.1m last year and it has lent its mortgage customers £3.7bn, as reported by City AM.

However, it said that after overheads and other costs, the mortgage side of the business made an 'immaterial' contribution to Tesco's overall profits.

Mortgage customers will be transferred from Tesco Bank to Halifax, a division of Bank of Scotland, which is a subsidiary of Lloyds, which has a headquarters in Barnwood. The transfer will take place at the end of this month.

The move is part of Tesco's plan to stay strong during a tough time for retail, by simplifying its business and selling off non-core arms such as mortgages.

Tesco Bank said its priority was to find a purchaser which will continue to serve its mortgage customers well. It is confident that Lloyds Banking Group and Halifax will provide an excellent customer experience.

Lloyds said it expects the new portfolio to generate good returns for the company.

Related Articles

EXCLUSIVE: Dowdeswell Estates and Gloucester City Council agree deal to redevelop The Fleece Hotel Image

EXCLUSIVE: Dowdeswell Estates and Gloucester City Council agree deal to redevelop The Fleece Hotel

Punchline can exclusively reveal that a "game changing" deal has been agreed to transform a Gloucester City centre landmark.

VIDEO: Take a tour of the historic Fleece Inn in Gloucester ahead of its redevelopment Image

VIDEO: Take a tour of the historic Fleece Inn in Gloucester ahead of its redevelopment

Punchline TV speaks to the key players in the redevelopment and takes a peak inside the historic building before it is redeveloped

Work starts on Cheltenham Quadrangle rooftop restaurant development  Image

Work starts on Cheltenham Quadrangle rooftop restaurant development

Transformation of landmark Cheltenham town centre building the Quadrangle has now begun, with contractors moving onto the site.

Historic house for sale - with Lord of the Manor title Image

Historic house for sale - with Lord of the Manor title

If you have aspirations to becoming a real life Lord of the Manor and fancy following in the footsteps of Royalty we could be able to help.

Copyright 2019 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.