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.

How to earn Avios points from UK credit cards

How to earn Avios from UK credit cards (December 2021)

As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways BA Amex American Express card

British Airways American Express

5,000 Avios for signing up, no annual fee and an Economy 2-4-1 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Run your own business?

We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios:

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus:

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

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.)

Category

British Airways and Avios, Tesco Clubcard

This article is closed to new posts. Discussion continues in the HfP Forums.

Roger says:

14 Sep14 September 06:09

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:
  
  14 Sep14 September 06:21
  
  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:

14 Sep14 September 06:21

Why is this considered as Tesco being generous? It doesn’t seem very generous to me?
- Mr(s) Entitled says:
  
  14 Sep14 September 07:00
  
  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:
    
    14 Sep14 September 07:08
    
    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:
      
      14 Sep14 September 21:19
      
      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:
        
        16 Sep16 September 12:37
        
        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:
  
  14 Sep14 September 09:27
  
  You can bank your points in two weeks and remortgage immediately.
John says:

14 Sep14 September 06:55

Won’t some people hit the 30000 clubcard points per quarter limit?
- Shoestring says:
  
  14 Sep14 September 07:00
  
  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:
    
    14 Sep14 September 08:31
    
    I agree with shoestring. Mainly through Tesco finance I received well over the threshold last quarter and all points were received.
    - Double Dee says:
      
      14 Sep14 September 09:49
      
      I think the EASY days of Tesco points abuse are gone so they don’t bother with the limits as much
    - Ben says:
      
      14 Sep14 September 10:36
      
      I had my points capped at 30k for Q4 18 and Q1&2 19. All finance related.
      - RWJ says:
        
        14 Sep14 September 11:20
        
        Tell me more…
      - Double Dee says:
        
        14 Sep14 September 11:46
        
        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:
        
        14 Sep14 September 14:36
        
        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:

14 Sep14 September 07:13

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:
  
  14 Sep14 September 07:28
  
  £3k ??
  - The Savage Squirrel says:
    
    14 Sep14 September 09:18
    
    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:
      
      14 Sep14 September 10:21
      
      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:

14 Sep14 September 07:23

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:
  
  14 Sep14 September 09:26
  
  Michele did a piece. Rhys is on holiday this week so I have had to prioritise stuff which took less research.
Shoestring says:

14 Sep14 September 07:23

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:

14 Sep14 September 08:09

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:
  
  14 Sep14 September 09:39
  
  My wife has this offer, is there anything in particular worth buying to maximise the offer?
  - C F Frost says:
    
    14 Sep14 September 10:07
    
    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.
    - Crafty says:
      
      14 Sep14 September 14:03
      
      We kept things sensible and ordered 3 multipacks. Ridiculously generous offer.
Benylin says:

14 Sep14 September 08:45

OT: should be Marriott redemption pricing be live now?
- Rob says:
  
  14 Sep14 September 09:25
  
  They sent me a note saying it would feed in over a few hours. Still Friday in some parts of the world!
  - Roger says:
    
    14 Sep14 September 14:06
    
    Still not live?
    The page still shows old price and no way to check which are the peak or off peak dates