Tesco Bank has launched its first two-year tracker rate at 90 per cent loan-to-value (LTV) and has reduced the rates on a number of products in its fixed-mortgage product range.
The new two-year tracker is set at 2.6 per cent and comes with a £300 product fee and a £195 non-refundable booking fee.
Rates on two-, three- and five-year fixed mortgages have been cut by up to 0.8 percentage points.
The new products include:
• 1.29 per cent for the 2 year fixed 60 per cent LTV with £800 product fee (plus £195 non-refundable booking fee)
• 2.29 per cent for the 3 year fixed 75 per cent LTV with no product fee (plus £195 non-refundable booking fee)
• 2.89 per cent for the 3 year fixed 85 per cent LTV with no product fee (plus £195 non-refundable booking fee)
• 3.79 per cent for the 5 year fixed 90 per cent LTV with £800 product fee (plus £195 non-refundable booking fee)
Tesco Bank offers Clubcard customers an additional point for every £4 on their monthly repayments.
Customers also have the flexibility to make regular or lump sum overpayments of up to 20 per cent of the outstanding balance per year during the initial rate period, without having to pay an Early Repayment Charge (ERC).
Customers can apply for up to two payment holidays per year, allowing them to miss a single monthly payment. A maximum of six payment holidays can be taken over the life of the mortgage.
Remortgage customers are being offered free standard legal fees and the first standard valuation.
