Tesco reduces rates on its two and five-year fixes

Tesco Bank has reduced the rates on a selection of its two-year and five-year fixed rate mortgage products to help customers take the next step on the property ladder.

The new rates include:

– 1.64% for the 75% LTV fixed for 2 years with no product fee

– 1.33% for the 80% LTV fixed for two years with £995 product fee

– 1.78% for the 60% LTV fixed for five years with £995 product fee

– 2.19% for the 75% LTV fixed for five years with no product fee

David McCreadie, managing director at Tesco Bank, said: “At Tesco Bank, we are committed to helping customers make their move on the property ladder and we are delighted to reduce the rates on a selection of our two-year and five-year mortgage products, helping to make it more affordable for customers to buy or remortgage their home.

“We know that customers want to make their money go as far as possible and, as well as reducing selected rates, we are delighted to provide a little help by enabling our customers to collect Clubcard points on their mortgage repayments.”

Tesco Bank Mortgage customers can collect one Clubcard point for every £4 on their monthly repayments.

Customers also have 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. All remortgage products from Tesco Bank also include free valuation and free conveyancing.

The following reduced mortgage products are available through Tesco Bank and Tesco Mortgage Intermediaries.

All products will move onto the Tesco Bank standard variable rate (currently 3.89%) at the end of the initial fixed rate period. Early repayment charges may apply during the initial fixed rate period.