EDINBURGH-based Tesco Bank has insisted it remains on track to launch its long-awaited mortgage product this autumn, despite reports that it could be delayed until next year.

The development of a home loan is a key part of the supermarket giant’s drive to take customers from the established high street banks after it bought out RBS’s 50% share of its financial services arm in 2008.

A Tesco spokesman said: “We are making good progress with our mortgage launch plans. We’re confident that our initial entry into the mortgage market will see us offer a great value product with the convenience and simplicity that Tesco customers expect.”

The bank, headed by former HBOS and RBS executive Benny Higgins, is in talks with the Financial Services Authority about the product.

The spokesman said: “We are in the advanced stages of the regulatory process and will be in a position to provide details of the launch soon.”

Tesco is expected to follow its mortgage launch with current accounts. It already offers credit cards, loans, savings accounts and insurance.

Meanwhile, Tesco is tipped to launch a big price offensive in its stores next week. The move is expected to see it focusing on low prices.

The chain is the UK grocery market leader with a 30.4% share.