Bigger PPI payouts
Lloyds poised to secure Tesco Bank’s mortgages as profits slip
Tesco is ending its seven-year involvement in mortgages
UPDATE 31st July: Britain’s biggest mortgage lender Lloyds Banking Group posted weaker-than-expected pretax profits on Wednesday, as it made a further £550 million provision to meet claims for mis-sold insurance to consumers.
The bank posted pretax profits of £2.9 billion for the first half of the year, below forecasts of 3.45bn. The figure was down 7% from 3.12bn for the same period the previous year.
The group is understood to have seen off Santander and RBS to be named preferred bidder for Tesco Bank’s £3.7 billion mortgage book.
The supermarket group announced in May that it was selling its home loans business and was thought to be entering talks with Spanish bank Santander, already the third biggest mortgage provider in the UK.
RBS had hoped to pull off what would have been its biggest takeover since the financial crisis.
However, Lloyds was reported by Sky News to have emerged as the new favourite. However, an expected announcement alongside its half year results did not materialise.
Lloyds Banking Group is the biggest mortgage lender in the country with its market share rising slightly from 15.7% to 15.8%.
Edinburgh-based Tesco Bank began selling mortgages in 2012 under CEO Benny Higgins and has about 23,000 customers on its books. Gerry Mallon, who replaced Mr Higgins in February, reversed the policy due to “challenging market conditions”,