No more Avios from mortgages as Tesco Bank puts its portfolio up for sale
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It is no longer possible to earn Avios points from mortgages.
There has only been one way to earn Avios from your mortgage, and that was via Tesco Bank.
Tesco Bank quietly entered the mortgage market back in 2014. We never covered it much because there are many factors to consider when taking out a mortgage.
Whether or not you will earn Avios or Virgin Flying Club miles via Clubcard points should be very much at the bottom of your list of considerations.
It was all very simple:
You earned 1 Tesco Clubcard point (2.4 Avios) for every £4 of your monthly mortgage payment. This applied to both the capital and interest elements.
You earned 1 Tesco Clubcard point (2.4 Avios) for every £4 of any overpayment you make, as long as it does not fully repay your mortgage
If you were making monthly payments of £1000 you would be earning 250 Clubcard points. This is worth 600 Avios, so about £5-£6 of value. It was not enough to move the needle on which mortgage provider is cheapest.
This deal is no more. Tesco Bank announced yesterday that it is pulling out of the mortgage market. It is no longer accepting new applications and, more importantly, the existing loan book will be sold to another lender. Once the sale is complete it is virtually certain that Clubcard points will no longer be available.
It isn’t clear what the future holds for the rest of Tesco Bank. It has not made much of an impact in the current account market, and the credit card arm is also underpowered.
When it launched the current account, Tesco claimed that it was deliberately uncompetitive so that it could offer good customer service. Several years on, that excuse no longer washes.
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How to earn Avios from UK credit cards (April 2025)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
Barclaycard Avios Plus Mastercard
Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review
Barclaycard Avios Mastercard
Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review
There are two official British Airways American Express cards with attractive sign-up bonuses:
British Airways American Express Premium Plus
30,000 Avios and the famous annual 2-4-1 voucher Read our full review
British Airways American Express
5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £15,000 Read our full review
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.
SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on the ‘free for a year’ American Express Preferred Rewards Gold card is increased from 20,000 Membership Rewards points to 30,000 points. Points convert 1:1 into Avios (30,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.
SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on American Express Platinum is increased from 50,000 Membership Rewards points to a huge 80,000 points. Points convert 1:1 into Avios (80,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.
American Express Preferred Rewards Gold
Your best beginner’s card – 30,000 points, FREE for a year & four airport lounge passes Read our full review
The Platinum Card from American Express
80,000 bonus points and great travel benefits – for a large 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, and the standard card is FREE. Capital on Tap cards also have no FX fees.
Capital on Tap Visa
NO annual fee, NO FX fees and points worth 1 Avios per £1 Read our full review
Capital on Tap Pro Visa
10,500 points (=10,500 Avios) plus good benefits Read our full review
There is also a British Airways American Express card for small businesses:
British Airways American Express Accelerating Business
30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.
American Express Business Platinum
50,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review
American Express Business Gold
20,000 points sign-up bonus and FREE for a year 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.
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