Asda adds mortgages to consumers' shopping list

Published on Friday 23 May 2008 21:13

SUPERMARKET giant Asda has announced that it is entering the mortgage market, but experts have questioned the timing of the move.

Asda, which already offers financial products including insurance, savings accounts and credit cards, will direct customers to an as yet unchosen broker for whole-of-market advice.

No other supermarket offers mortgages except Tesco, which directs customers to brokers London & Country.

"We do not think the mortgage market is working well for many consumers," said Gev Lynott, director of new business at Asda financial services.

"We have been looking to find a way into the mortgage market for some time, but it has been difficult to get the interests of the providers, brokers and customers in line."

With the number of mortgages available plummeting in the past year, the timing is unusual, said Darren Cook, mortgage expert at Moneyfacts. "Some people may see it as a new avenue to get cheaper mortgages.

"But the application process and product availability should be no different. The market is proving difficult for most people and there should be no advantage to customers, other than the levels of advice or service, wherever they go."

Asda's aim is to offer a one-stop financial service, but Jim Spowart, chairman of the Edinburgh-based comparison service peopleschampion.com, said it was assuming a degree of customer loyalty.

"Customers are more astute these days; if Asda is going through a broker, customers may as well go direct to a broker."