Tuesday, October 5, 2010
Hopes for housing market dashed as cheaper mortgages at least 12 months away
Government efforts to improve competition in banking are being hampered by a tougher approach from the regulator, with Tesco facing delays to its attempt to launch a home loan business. Tesco is unlikely to meet its target of opening a mortgage lending business this year with the supermarket still awaiting Financial Services Authority approval. Gaining approval could take a further 12 months, according to a report yesterday, in a delay that would be a blow to the Government which is trying to encourage new entrants into the banking market. "The FSA is just being careful. It is a new process and it is very difficult," said a spokesman for Tesco.