Tesco Bank launches new fixed rate mortgage deals

Tesco Bank is offering competitive new mortgage deals with rates starting at 2.28% on a 2 year fixed rate (60% LTV) and 2.89% (previously 3.39%) on a 5 year fixed rate (70% LTV).

The new range also includes a new 5 year fixed rate (80% LTV) at 3.79% (previously 4.39%) and the 2 year fixed rate (70% LTV) at 2.39%.

In addition to good value and great service, customers taking out a mortgage with Tesco Bank will also receive a ‘thank-you' with Clubcard points as they repay their mortgage, collecting one point for every £4 on their monthly mortgage repayments.

In announcing the new rates, David McCreadie, Managing Director of Banking, commented: "We are delighted to be offering a new range of competitive mortgages, particularly as we enter one of the busier periods for the housing market.  These products combine competitive rates and fees with the ‘thank-you' of Clubcard points and underline our commitment to meeting the financial services needs of Tesco customers."

The Tesco Bank mortgage range includes 2, 3 and 5 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 (currently 4.24%) at the end of the initial fixed or tracker rate period. Early Repayment Charges apply during the initial rate period.

For more information on mortgages, visit tescobank.com.