Tesco borrowers set for Clubcard points windfall after Lloyds sale
Tesco Bank's 23,000 mortgage borrowers are set to land a Clubcard points windfall after the group agreed a £3.8 billion sale of the portfolio to Lloyds Banking Group.
Tesco said customers will stop accruing Clubcard loyalty points on their mortgage repayments from September 27 following the transfer to Lloyds-owned Halifax, but will be offered a lump sum in November "to say thanks for being a Tesco Bank customer".
It comes after concerns that Tesco Bank borrowers would have been left out of pocket, while many also chose their mortgage deals based on the additional perk of receiving Clubcard points.
Tesco Bank said fixed rate customers will receive a lump sum of points for the remainder of their term based on their contractual monthly repayments.
For example, a customer with three years left on their fixed mortgage deal will receive three years' worth of points in their quarterly statement in November.
Those on tracker rates will also receive a Clubcard lump sum based on the remaining length of their deal and monthly repayments, while standard variable rate (SVR) customers will receive a year's worth of points.
Those in the application process or switching to a new new deal will also receive a lump sum, as long as they have reached the formal offer stage.
Tesco Bank said it was writing to customers to outline what the switch to Halifax will mean to them.