Tesco Bank sells mortgages to Halifax – here’s what you need to know
I have a mortgage with Tesco Bank – what does this mean for me?
Tesco Bank says it will provide a full service until 27 September, so you’ll be able to make changes such as switching products, amending terms or applying for a payment holiday with it until this date. It will also continue to process any mortgage applications made before 24 May, but they must be completed by 14 December 2019.
Here’s what will happen depending on the type of mortgage you have:
Fixed rate mortgage customers – nothing will change until the end of your fixed period – as the existing agreed rate will be honoured by Halifax.
Tracker mortgage customers – the rate will remain the same until the end of the tracker period – unless the base rate changes during that time.
Standard variable rate customers – customers will continue to be charged Tesco Bank’s standard variable rate. We asked Tesco Bank to confirm how long it could guarantee this for, and it simply said customers would be contacted about any future changes.
Tesco Bank has confirmed early exit fees won’t be waived as a result of the move to Halifax.
We’ve asked both Halifax and Tesco Bank if current Tesco Bank customers will be able to switch to other Halifax products, without undertaking a new affordability assessment, and will update this story when we hear back.
See Tesco Bank’s FAQs or call 0345 217 2050 for more information.