Tesco are elbowing their way into the mortgage market, expanding their direct home loan lending through Tesco Bank branches. Although they have been loaning to homebuyers directly over the last 2 and half years, the bank is now spreading to get involved with brokers, in order to reach more people.

Brokers deal with huge numbers of people each year seeking mortgages, and until now, Tesco Bank has had no dealings with them, choosing to sell directly to customers.

Possibly as a result of the past year, which has seen Tesco lose its market share, that it had so far so successfully hoarded. Boasting up to 30% of the market share, Tesco was the supermarket king of the country.

However, the rise of the discount stores has upset its financial security.

Now, unleashing its deals on the public via brokers, it could be hoping a stronger arm in the mortgage market will be enough to once again set it apart from the rest of the crowd.

However, it is entering a very competitive market, with ten year fixed rate mortgages now on offer, and with interest rates at an all time low (for the people with enough savings for a big deposit). Tesco will have to fight for custom, but it does have the advantage of the financial backup of being the biggest supermarket chain in the country.

Tesco Bank mortgages are not available on the Help to Buy scheme, which limits their accessibility to people, foremost among them being first time buyers who don’t have huge amounts of cash squirreled away.

This isn’t to say a Help to Buy Tesco loan would never happen. With the backing of the big superstore, Tesco could potentially even offer lower interest rates to people looking to buy their own home.