Tesco Bank has cut the rates on its 95-per cent loan-to-value (LTV) product range, in what it says is a move to offer more customers the chance to get on the property ladder.
Along with the rate reduction in its high-LTV range, the bank has also cut the rates on some of its two-, three- and five-year fixed-rate and two-year tracker products.
The new rates include:
- Five-year fixed deal at 4.69 per cent for the 95 per cent LTV with no product fee.
- Two-year fixed rate of 4.19 per cent for the 95 per cent LTV with no product fee.
- Two-year tracker rate of 1.25 per cent for the 75 per cent LTV with £800 product fee.
Highlights of Tesco Bank’s mortgage products include:
- Tesco Bank mortgage products reward the loyalty of customers with Clubcard points as they repay their mortgage. Customers can collect one Clubcard point for every £4 on their monthly repayments
- Flexibility to make regular or lump sum overpayments of up to 20 per cent of the outstanding balance each year during the initial rate period, without having to pay an Early Repayment Charge
- Available for first-time buyers, home movers and those looking to remortgage
- Those remortgaging will also benefit from free standard legal fees and the first standard valuation
David McCreadie, managing director of banking at Tesco Bank, commented:
“We are delighted to widen the options available to customers, and first-time buyers in particular, by launching these new highly competitive offers. We know it can be difficult for first-time buyers to get on the property ladder, and we hope that the new rates on our 95 per cent LTV mortgage products will make it a little bit easier.”
The full range of products includes (new rates in bold):
| Product | Max LTV | Fee Product (Product Fee + £195 non-refundable booking fee applies) | Product Fee | APR | No Fee Product (No Product Fee. £195 non-refundable booking fee applies) | APR |
| 2 year fixed until 31/08/2017 | 60%75%80%85%90%
95% |
1.29%1.49%1.99%2.29%2.79%
N/A |
£800£800£800£800£800
N/A |
3.9%3.9%4.0%4.0%4.1%
N/A |
1.59%1.79%2.29%2.59%3.09%
4.19% (-0.30%) |
3.9%3.9%4.0%4.0%4.1%
4.3% |
| 3 year fixed until31/08/2018 | 60%75%80%85%90%
95% |
1.89%2.09%2.49% (-0.10%)2.69%3.49%
N/A |
£800£800£800£800£800
N/A |
3.8%3.8%3.9%4.0%4.2%
N/A |
2.09%2.29%2.69% (-0.10%)2.89%3.69%
4.69% (-0.30%) |
3.8%3.8%4.0%4.0%4.2%
4.5% |
| 5 year fixed until31/08/2020 | 60%75%80%85%90%
95% |
2.29%2.49%2.89%3.19% (-0.20%)3.79%
N/A |
£800£800£800£800£800 | 3.6%3.7%3.8%4.0%4.2%
N/A |
2.39%2.59%2.99%3.29% (-0.20%)3.89% | 3.6%3.7%3.8%4.0%4.2% |
| N/A | 4.69% (-0.30%) | 4.5% | ||||
| 2 year trackeruntil 31/08/2017 | 75%85%90% | 1.25% (BoE base rate plus 0.75%) 1.75% (BoE base rate plus 1.25%)2.60% (BoE base rate plus 2.10%) | £800£800£300 | 3.9%3.9%4.1% | 1.75% (BoE base rate plus 1.25%) 2.25% (BoE base rate plus 1.75%)3.10% (BoE base rate plus 2.60%) | 3.9%4.0%4.1% |
