The new products have great rates that start at 2.64% (2 year fixed rate), 3.19% (5 year fixed rate), and come with a competitive product fee of £1,100 plus a booking fee of £195.
In addition, Tesco Bank has reduced its mortgage rates across its existing mortgage products. The mortgage range provides customers with some of the best deals on the market, with rates starting from 2.64%. The reductions apply to both fixed rate and tracker mortgages, whether customers are remortgaging or buying a new home.
Tesco Clubcard holders are rewarded with Clubcard points as they repay their mortgage, and collect one point for every £4 on their monthly mortgage repayments.
David McCreadie, Managing Director of Banking at Tesco Bank, said:
"We are delighted to be extending our mortgage range to offer customers more choice. These products underline Tesco Bank's commitment to offering great value mortgages that have competitive rates and fees, as well as rewarding customer loyalty with Clubcard points."
The Tesco Bank mortgage 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.
