Tesco Bank is cutting interest rates on a number of its mortgage products by up to 0.7 percentage points.
The bank has also announced all its fee-based mortgages now have a single product fee of £800, plus a £195 non-refundable booking fee. This cuts many of its fees by as much as £500.
Highlights of the new products include:
- 3.09 per cent (-0.70 per cent) for the five-year fixed 80 per cent LTV with no fee
- 3.19 per cent (-0.50 per cent) for the three-year fixed 85 per cent LTV with no fee
- 2.99 per cent (-0.40 per cent) for the five-year fixed at 80 per cent LTV with £800 fee (plus £195 non-refundable booking fee)
- 2.79 per cent (-0.40 per cent) for the two-year fixed at 85 per cent LTV with no fee
David McCreadie, managing director of banking, comments:
“We want to do everything we can to help more customers purchase their own home, and we are delighted that our new two-year, three-year and five-year fixed-rate mortgages are among the most competitive rates available. When taking a mortgage with Tesco Bank, customers can be confident that they will receive great value and award-winning customer service.”
The bank’s mortgages also reward customers with Clubcard points as they repay their mortgage, collecting one point for every £4 on their monthly repayments. Regular or lump sum overpayments can be made at up to 20 per cent of the outstanding balance per year during the initial rate period, without having to pay an Early Repayment Charge.
Tesco Bank mortgages have recently been recognised as the ‘Best Direct Lender’ in the 2014 What Mortgages awards.
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