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Tesco Bank stops selling mortgages and seeks exit

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Christian Fernsby |
Tesco Bank
Britain   Tesco Bank

Tesco Bank is getting out of the mortgage market blaming "challenging market conditions".

The lender said on Tuesday it had stopped new mortgage lending and was actively pursuing a sale of its existing portfolio, which has total lending balances of £3.7bn.

Tesco Bank currently has more than 23,000 mortgage customers who are currently able to collect Clubcard points when repaying their loans.

Chief executive Gerry Mallon said the lender would ensure fair treatment as he sought to justify the shift.

He wrote: "In recent years, challenging market conditions have limited profitable growth opportunities.

"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.

"To that end, we have made the strategic decision to focus on serving a broader range of customers in more specific areas, which means moving away from our mortgage offer.

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