LONDON, Oct 3 (Reuters) - Tesco's plans to sell mortgages in Britain could face a delay because it has yet to receive approval from the country's financial services watchdog.
"The FSA (Financial Services Authority) is just being careful. It is a new process and it is very difficult," a Tesco spokesman said.
He declined to comment on a report in the Observer newspaper that Tesco's plans to enter the home loans market could be delayed by up to 12 months.
Tesco, Britain's biggest retailer, had originally hoped to start selling mortgages late this year. However, the Financial Times newspaper recently said it aimed to launch a home loans product in March.
Tesco, which reports first-half results on Tuesday, is building up its building up its banking and insurance business, and is expected to launch a fixed-rate savings account later this month, with a current account to follow next year. (Reporting by Mark Potter; Editing by Jon Loades-Carter)