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An Avios windfall for anyone who has a Tesco Bank mortgage

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Back in May, we covered the announcement that Tesco Bank had decided to pull out of the mortgage market.

It was recently announced that Lloyds Banking Group had bought the ‘book’ in a £3.8bn deal.  It paid 2.5% over the face value of the outstanding loans.

It seems that Tesco Bank is being more than fair with compensation to mortgage holders who will no longer be able to collect Clubcard points on their mortgage payments.

Tesco Bank mortgage book sold to Halifax

For customers on a fixed rate or tracker mortgage, they will receive – in one chunk – all of the Clubcard points they would have earned over the remaining term of their fix or tracker deal.

For anyone on a standard variable rate, they will receive a one-off payment equivalent of 12 months of Clubcard points.  This is generous, given that the customer could then immediately remortgage.

The reader who sent me details was in line for a payout of 23,000 points, worth 55,000 Avios.

(Want to earn more Avios?  Click here to visit our home page for the latest articles on earning and spending your Avios points and click here to see how to earn more Avios from current offers and promotions.)

Comments (70)

  • Roger says:

    Marriott Bonvoy Amex Card

    Did anyone receive any email from Marriott yesterday about 30000 Bonus Points offer?
    Didn’t see any T&C to state 24 month rule.

    Rob, would I be chancing if I had Marriott Bonvoy Amex Card in last 12 months and apply again for Bonus Points?

    • Shoestring says:

      I understand I will not be eligible for any Welcome Bonus award if I currently hold or have held any other personal American Express Cards in the past 24 months.

  • Sam Wardill says:

    Why is this considered as Tesco being generous? It doesn’t seem very generous to me?

    • Mr(s) Entitled says:

      Agreed. For example, the product is not until the end of the fix, it is until the end of the term. Pretty sure if a customer just decided to stop paying at the end of the fixed period Tesco wouldn’t consider that the customer was fair or generous. They would start proceedings to take your house instead.

      • Mr(s) Entitled says:

        Mortgages are a long term product so there should be something in the T&C’s about clubcard points not being applicable throughout because they could never guarantee their existence. But not all T&C’s are drafted by competent people.

        If I was a Tesco mortgage holder I’d check the T&C’s carefully. Companies have been known to give a little now to stop a person claiming a lot later.

        • Andrew says:

          I am a Tesco mortgage customer and – although not having checked in the past couple of years – recall the T&Cs saying something along the lines of Clubcard points on mortgage being subject to change or withdrawal at any time/Clubcard scheme could change at any time etc etc., so they’d be within their rights to stop points whenever they wanted.

          • Nick M says:

            We took ours out last year and I’m pretty sure it says something to the same effect…

            I’m quite happy with this one-off payment, and to be honest the only difference for us (fixed rate) is that we won’t get any points for any adhoc over-payments we may have made… however its very unlikely that we would have chosen to do so before the end of the term anyway (well, at least not before we had a remortgage offer on the table)

    • Rob says:

      You can bank your points in two weeks and remortgage immediately.

  • John says:

    Won’t some people hit the 30000 clubcard points per quarter limit?

    • Shoestring says:

      there was some talk over the years that banking points were never counted in the 30K limit

      whatever, I can’t see that Tesco would award more than 30K points (a 5 year fixed mortgage, for example) then remove the excess points over 30K a few weeks later

      • Flyoff says:

        I agree with shoestring. Mainly through Tesco finance I received well over the threshold last quarter and all points were received.

        • Double Dee says:

          I think the EASY days of Tesco points abuse are gone so they don’t bother with the limits as much

        • Ben says:

          I had my points capped at 30k for Q4 18 and Q1&2 19. All finance related.

          • RWJ says:

            Tell me more…

          • Double Dee says:

            Yes interested how you would do this for debit card only transactions vs using a credit card unless you have large amounts to be paid where they only accept debit cards?

          • Ben says:

            My partner had hers capped as well, although I doubt she even knows she has a club card account… I just have a reasonable amount of debit card spend (60000 x 8 = £480,000).

            Note to self- must live more frugally…

  • Aron says:

    I’ll only get around 5500 points for my remaining fixed term. Should have bought a house down south and be paying £3k a month.

    • C F Frost says:

      £3k ??

      • The Savage Squirrel says:

        Why the puzzlement? The average detached house in London is over £900,000, so will require a monthly mortgage of more than this amount unless you’re throwing in huge amounts of capital.

        • J says:

          I rent a 45sq meter flat in zone 1 for £2040 per month in a Qatari owned property. £3k to own a house seems very attractive right now!

  • Nick says:

    Is there a QR sale piece coming? If not, does anyone know if any other decent blogs have covered it? The Europe one rather than UK, for obvious reasons.

    • Rob says:

      Michele did a piece. Rhys is on holiday this week so I have had to prioritise stuff which took less research.

  • Shoestring says:

    O/T as well as San Francisco & Miami, Virgin have added Orlando £250 Economy return flights to their offer (Skyscanner but widely available) – various dates through March/ April 2020

  • C F Frost says:

    So then, beer drinkers, who enjoyed the NatWest Beer52 deal, just ended? 75% back and convertible at 1.175 into Avios… it all made for 88% back on spend in Avios.

    • Matt B says:

      My wife has this offer, is there anything in particular worth buying to maximise the offer?

      • C F Frost says:

        Not really. Just aim for free postage and it’s a matter of choosing whichever hipster juice appeals the most. My offer has ended, so good to see that others have the chance. Of course, there are other means of accessing the site other than typing in the web address…

        It approaches free avios / free beer. Depends on how you view life.

  • Benylin says:

    OT: should be Marriott redemption pricing be live now?

    • Rob says:

      They sent me a note saying it would feed in over a few hours. Still Friday in some parts of the world!

      • Roger says:

        Still not live?
        The page still shows old price and no way to check which are the peak or off peak dates