Tesco set for further push into UK mortgage market
Supermarket chain Tesco is poised for a further push into the UK mortgage market with news that the company is applying for a second credit rating for its Tesco Personal Finance division. This would allow Tesco to effectively ring fence the financial division, which currently borrows through the parent company, and allow direct access to money market funds.
The financial division is currently piggybacking the Tesco parent company and using its financial strength and financial credit rating to access funds. The ability for the division to effectively "look after itself" and use its own credit rating to access funds offers the opportunity to expand the operation quicker and more efficiently. It also opens up the intriguing prospect of hiving off the financial division from the parent company and potentially raising significant funds in the long-term.
While the power of Tesco's supermarket division is vital, and the access to millions upon millions of customers each day, there is a feeling that the company has the potential to build up various profitable subsidiaries which could then be sold off or operate separately from the main company. However, it is worthwhile noting that Tesco will not be going down the same route as Northern Rock which depended upon the money markets too much which ultimately led to the company's demise.
Share this..
Related stories
Laura Ashley figures reflect positive UK retail sector
Full-year figures from Laura Ashley came in with a profit of £10.1 million against £9.6 million in the corresponding period last year. The company also confirmed that like-for-like sales were up 4.6% in the eight weeks to March 27 which has had a positive impact upon the share price today. So does this renewed optimism bode well for the UK retail sector? Despite the fact that Laura Ashley has...
Read MoreStranded abroad with no money!
Going on holiday is a time to have fun, relax and create great memories, but unfortunately, sometimes things can go wrong. A survey from gapyear.com found that 25% of people have been stranded aboard with no money at some time on their trip. Loss, theft and carelessness may lead to a situation were you are in a foreign country with no money left. So what can you do?
Get help from family...
Read MoreJudge calls for bank charges precedent
British law lacks a precedent on legal cases dealing with bank charges, a judge has warned.District court judge Stephen Gerlis told the Today programme that no appellate court decision has been made on the issue, meaning judges are not bound by a definitive view of the law in this area.The Office of Fair Trading is currently undertaking an investigation into bank charges levied on customers who go...
Read MoreBank Of England Priming UK For More Doom And Gloom
He is a man of few words in public but news that Charles Bean, the deputy governor of the Bank of England, has compared the current slowdown to that seen back in the 1970s is worrying in itself. However, on a more general note he has suggested in the strongest terms that the current economic slowdown which the world economy is feeling is likely to 'drag on for some considerable time'.
RBS takeover of ABN Amro to be investigated
The £60 billion acquisition of ABN Amro by Royal Bank of Scotland back in 2007 is set to be investigated by the Financial Services Authority (FSA). While many people have been calling for a formal investigation of the takeover it is a surprise to see that nearly 2 years after the acquisition the FSA is set to act. So what is the basis of the investigation?
The investigation will lo...