Tesco to offer mortgages and current accounts services

The supermarket group will also launch a fixed-rate savings bond later this month.

Supermarket group Tesco on Tuesday announced that the plans to expand its banking arm by offering mortgages and current accounts services were "moving along well".

According to a report in The Independent, the group said that it hoped to launch mortgages in the first half of next year, and current accounts in the second half of the 2011/2012 financial year.

Media reports at the weekend had suggested that Tesco's mortgages plan faced severe delays due to the Financial Services Authority's procedures.

The group also plans to launch new insurance products in collaboration with Belgo-Dutch insurance group Fortis in the coming months. It will also launch a fixed-rate savings bond later this month.

Tesco has said that it will submit it proposals to the FSA next month and expects permission to launch the mortgages within the following six months.

Tesco Bank, which established itself as a savings brand during the financial crisis, has reported a 12.2 per cent rise in trading profits, to £129m, in the 26 weeks to 28 August, The Independent adds.

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