It is available to 60% LTV and has a £195 booking fee and a £1,300 application fee.
The lender has also cut a number of its other two- and three-year fixed rates and tracker mortgages by up to 0.5% and 0.3% respectively.
All products have a £195 booking fee.
Tesco Bank managing director David McCreadie says:
“Our new rates are amongst some of the lowest we have ever offered, and I am particularly pleased that customers continue to be rewarded with Clubcard points on their repayments.”
