The rates have been reduced on their 2-year fixed rate deals at both 60% and 70% LTV, as well as the fees on the 60% LTV mortgage. Now starting from 1.99% for 60% LTV and 2.39% at 70% LTV, the rates are sure to promote competition from other mortgage lenders, as they are reductions of 0.65% and 0.4% respectively.
In announcing the new offers, Benny Higgins, Chief Executive of Tesco Bank, hailed the impact of the government and Bank of England scheme:
“We welcome the Funding for Lending Scheme, and are delighted to be able to pass on the benefit to our customers.
“We are committed to responsible lending and hope to enable our customers to borrow a further £1Bn, over the next year, at affordable rates.
“We are well positioned to meet the financial needs of Tesco customers in more ways and I am delighted we are now able to offer these market leading mortgage rates, in addition to our popular and growing range of banking and insurance products.”