Tesco Bank offers new rates on its rewarding mortgages

Tesco Bank is reducing rates across its range of mortgage products.

The new rates, which come a month after Tesco Bank added mortgages to its range of banking services, give customers some of the best deals on the market, with rates starting from 2.95%. The reductions apply to both fixed rate and tracker mortgages, whether customers are remortgaging or buying a new home.

David McCreadie, Managing Director of Banking at Tesco Bank, said: "We're pleased to offer customers some good news by reducing our rates to as low as 2.95%. Today's rate changes once again underline Tesco Bank's commitment to offering highly competitive banking products which meet our customers' needs today and as they continue to bank with us into the future."

As a thank-you, Tesco Bank rewards customers' loyalty with Clubcard points as they repay their mortgage. Tesco Clubcard holders will collect one point for every £4 on their monthly mortgage repayments.

The Tesco Bank mortgage product range includes two, three and five-year fixed rate mortgages, and a two-year base rate tracker. The products are flexible and straightforward:

All provide customers with the flexibility to make regular or lump sum overpayments of up to 20% of the outstanding balance each year during the initial rate period, without having to pay an Early Repayment Charge.

Customers opting for a tracker mortgage can take advantage of a ‘switch and fix' facility that allows them to move to a fixed rate if they require greater financial certainty.

Customers can apply for up to two payment holidays per year.

Those remortgaging will benefit from free standard legal and valuation services.

All products will move onto the Tesco Bank Standard Variable Rate at the end of the initial fixed or tracker rate period. There is a flat booking fee of £195 on all products and customers can choose a £0 or £800 product fee option to suit their needs. Early Repayment Charges apply during the initial rate period.

For more information on mortgages, visit tescobank.com.