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UK's 20th largest lender

Tesco lent just under £1.5bn in 2018. That's 0.5% of all mortgage lending.

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16-day submission time

That's 4 days faster than the 20 day average across the lenders we've measured.

About Tesco

Tesco is one of the largest supermarket retailers in the UK. Tesco mortgages had been offered since 2012. In May 2019 the company announced that it would no longer be offering new mortgages to customers. 

In September 2019, Tesco sold its mortgage portfolio to Halifax.

In this review we'll cover:

Compare Tesco mortgages

Compare Tesco mortgages and see how your monthly payments would change depending on the initial period, total mortgage length, your deposit and how much you want to borrow.

After you choose a Tesco mortgage deal, one of our expert mortgage brokers can check whether you're eligible and help arrange the mortgage for you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Your loan to value is 60.00%

Is Tesco a good mortgage lender?

In terms of quality, there are a number of ways to test how good a lender is. For new customers, Tesco is obviously no longer a possibility, however existing customers can see how well their customer service is rated.

During the period of July and December 2018, the Financial Conduct Authority (the financial regulator) received 113 officially upheld complaints.(1) That’s just under 0.2% of their customers, but is still below the 0.4% average across the 25 lenders we’ve looked at.*

*The number of customers served by this lender isn’t publicly available so we’ve estimated this figure based on market share and average house price in the UK.

How long does a Tesco mortgage application take?

It's not possible to find out how long an application takes as they are no longer offering mortgages.

How much could I afford to borrow for a Tesco mortgage?

As Tesco does not offer mortgages anymore, customers cannot borrow from the company.

Frequently asked questions (FAQs)

This information was updated in August 2019.

While Tesco is actively seeking a buyer for its mortgage portfolio, at the moment, things will remain the same as they are. When Tesco manages to secure a buyer for its portfolio, the new buyer is obliged to stand by those terms & conditions – if you have a fixed rate mortgage, this includes the interest rate. However, there may be changes in terms of the level of service.

There’s a possibility that rates will increase when the mortgages are moved to a new lender. This is because, by definition, the standard variable rate of each lender can be different. However, there’s the possibility that the interest rate could be lower if the new lender has a lower standard variable rate.

There’s very little chance of price gouging taking place because the FCA ensures that its regulated lenders adhere to treating customers in a fair manner.

If you’re on one of the Tesco fixed rate mortgages, then your payments will stay the same until the end of your fixed rate term. At this point, you will have to negotiate a new term, which could lead to a change in your payments.

If you’re on a variable rate mortgage then there’s a possibility that your payments will change – the new lender could have a different standard variable rate compared to the one that Tesco currently offers.

At the moment, there’s no time frame on when the mortgages will change. The reason for this is because, as of yet, Tesco does not have a buyer lined up. Once the sale has gone through, then mortgages will begin to move over to the new lender.

Even though Tesco mortgages are no longer being offered to customers, it’s still treating its existing customers to the same level of service as it did before the sale announcement. This means that you can still get in touch with Tesco about any issues that you might be having.

Tesco doesn’t have a live chat function on its website, but it does allow customers to use social media such as Twitter and Facebook to get in touch with an operative.

There are also a range of phone numbers that customers can use to get in touch with an operative instantly. These can be found here:

Customer services – 0345 217 2050

Customer services – using a Textphone (minicom) 0345 055 0607

Customers in financial difficulty – 0345 051 8447

Customers in financial difficulty – using a Textphone (minicom) 0345 055 0607

Customers can also write to Tesco at: 

Tesco Bank Mortgage Operations

PO Box 353



Tesco are still allowing customers who are coming to the end of their fixed rate period to transfer to a new fixed or variable rate mortgage. There’ll be no changes to the terms & conditions while Tesco is still the owner of the portfolio.

Customers can still apply for additional borrowing on their Tesco mortgage. Once a customer has made six consecutive monthly payments, they’ll be eligible for additional borrowing. Borrowing is available on two and five year Tesco fixed rate mortgages – up to 90% loan-to-value and on any variable rate mortgage up to 95% loan-to-value.

The additional borrowing will be subject to credit checks and affordability assessments. It could also require another valuation of your property to ensure that you don’t go over the maximum loan-to-value. In this case, the customer is required to pay the valuation fee.

This depends on the terms & conditions in place when you received your mortgage. If your mortgage offer stated that it was portable then you will be able to port your mortgage – as long as you meet all lending criteria that is in place for your new property.

Tesco does allow customers to take payment holidays. Once you have made six consecutive monthly payments, you will be able to take a one month payment holiday.

Tesco will carry out checks to ensure that you are able to afford your mortgage after the holiday. This is because your interest payments will continue even though you have had a one month payment holiday.

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Your home could be repossessed if you don't keep up repayments on your mortgage.

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All information was sourced from Tesco’s own website, unless referenced below.

  1. FCA

Source, used for info but not directly referenced in article: