Mortgages could be sold alongside groceries

Customers would be able to sign-up for a mortgage, or remortgage, at the same time as buying their groceries.

Tesco and Royal Bank of Scotland - which jointly own Tesco Personal Finance (TPF) - will discuss a home loan launch when they meet in October.

However, TPF told BBC News Online that The Times had "jumped the gun" and the idea "may never see the light of day".

"We are looking at introducing new products but only when certain we will be cheaper or better than the opposition," Stuart Neill, TPF spokesman. told BBC News Online.

For a company such as Tesco to be interested in mortgages they would have to do serious amounts of business Ray Boulger, Charcol

But Mr Neill confirmed that mortgages will be discussed at next months TPF board meeting.

Serious business

TPF already offers a range of financial products such as loans, credit cards and insurance.

In addition, Tesco customers can sign up for the Royal Bank of Scotland branded One Account in store.

Last year Tesco made �80m pre-tax profit from the sale of financial services.

But the viability of supermarkets offering complex financial products, such as mortgages, has recently been called into question by Sainsbury's decision to ditch its home loan range.