In a Telegraph interview, Benny Higgins, chief executive of Tesco Bank, said:
“We’ve been [in the direct market] for over two years now, and we realised that while we’re happy with how it’s going, we are only serving a modest proportion of Tesco customers. We’re operating in less than 10 per cent of the market.
“Whilst it wasnt our intention at the very outset, it is clear to us that over half of Tesco customers are buying mortgages through brokers and that number is increasing under the new regulatory code.”
The move is expected to considerably increase mortgage business for the Bank. In November, the Telegraph reported that the company was in the early stages of examining a potential partial float of Tesco Bank to raise between £500m and £1bn.
Tesco has sold more than £1bn worth of home loans since it started offering mortgages two and a half years ago.
