It is no longer possible to earn Avios points from mortgages.
There has only been one way to earn Avios from your mortgage, and that was via Tesco Bank.
Tesco Bank quietly entered the mortgage market back in 2014. We never covered it much because there are many factors to consider when taking out a mortgage. Whether or not you will earn Avios or Virgin Flying Club miles via Clubcard points should be very much at the bottom of your list of considerations.
It was all very simple:
You earned 1 Tesco Clubcard point (2.4 Avios) for every £4 of your monthly mortgage payment. This applied to both the capital and interest elements.
You earned 1 Tesco Clubcard point (2.4 Avios) for every £4 of any overpayment you make, as long as it does not fully repay your mortgage
If you were making monthly payments of £1000 you would be earning 250 Clubcard points. This is worth 600 Avios, so about £5-£6 of value. It was not enough to move the needle on which mortgage provider is cheapest.
This deal is no more. Tesco Bank announced yesterday that it is pulling out of the mortgage market. It is no longer accepting new applications and, more importantly, the existing loan book will be sold to another lender. Once the sale is complete it is virtually certain that Clubcard points will no longer be available.
It isn’t clear what the future holds for the rest of Tesco Bank. It has not made much of an impact in the current account market, and the credit card arm is also underpowered. When it launched the current account, Tesco claimed that it was deliberately uncompetitive so that it could offer good customer service. Several years on, that excuse no longer washes.
How to earn Avios from UK credit cards (June 2021)
As a reminder, there are various ways of earning Avios from UK credit cards. Many cards also have generous sign-up bonuses!
There are two official British Airways American Express cards:
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:
We also recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card:
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.
(Want to earn more Avios? Click here to visit our home page for our latest articles on earning and spending your Avios points and click here to see how to earn more Avios this month from offers and promotions.)