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.
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.
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