13 February, 2019
Tesco Bank cuts selected mortgage rates
- New range of £750 cashback remortgage products launched
Tesco Bank has today reduced rates across a range of its mortgages, ensuring that their house purchase and remortgage products remain some of the most competitive in the market.
Amongst the new competitive rates now on offer are:
2 year fixed rate homemover (no fee) unitl 30 April 2021:
- 95% LTV @3.18% with £500 cashback
- 90% LTV @2.27% with £500 cashback
3 year fixed rate remortgage with £995 fee until 30 April 2022:
- 90% LTV @2.27%
- 85% LTV @2.05%
5 year fixed rate homemover (no fee) until 30 April 2024:
- 95% LTV @3.60% with £1000 cashback
- 90% LTV @2.70% with £1000 cashback
5 year fixed rate remortgage (no fee) until 30 April 2024:
- 90% LTV @2.64% with £750 cashback
- 85% LTV @2.37% with £750 cashback
All products will move onto the Tesco Bank Standard Variable Rate (currently 4.04%) at the end of the initial fixed rate period. Early Repayment Charges may apply during the initial fixed rate period.
Tesco Bank mortgage customers benefit from the bank’s commitment to outstanding customer service, competitive rates and the ability to collect Clubcard points on their monthly repayments. To provide even greater flexibility, all of their customers also have the option to make overpayments of up to 20% of the outstanding balance each year, during the initial rate period, without incurring a fee.
Julian Hartley, Director of Mortgages, Savings and Loans said:
“At Tesco Bank we strive to offer customers great value mortgages and outstanding customer service. Today, I am delighted to announce further reductions in our rates across our range of house purchase and remortgage products, ensuring that Tesco Bank mortgages remain amongst the most competitive for customers.”
Cashback products are only available for customers borrowing over £100,000. Cashback is paid on completion of the mortgage. Tesco Bank mortgage products may be withdrawn or changed at any time. Subject to status and lending criteria.
Tesco Bank Mortgage customers can collect one Tesco Clubcard point for every £4 on their monthly repayments. Points are also collected on overpayments, but not on any overpayment made to pay off the mortgage in full. Clubcard points are not collected on any fees or charges paid separately from monthly payments. Clubcard points collection rates are subject to change and points will be added within 6 weeks of payment. The Tesco Clubcard Scheme is administered by Tesco Stores Limited, Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, AL7 1GA, who are responsible for fulfilling points.
A mortgage of £152,000 with an assumed start date of 01/05/2019 payable over 35 years initially on a fixed rate for 5 years at 2.32% and then on our current variable rate of 4.04% for the remaining 30 years would require 60 monthly payments of £528.84 and 360 monthly payments of £657.54. The total amount payable would be £268,560.49 made up of the loan amount plus interest of £116,445.49, a product fee of £0 and a valuation fee of £0. Please refer to your Mortgage Illustration for details on other fees payable on your mortgage. The overall cost for comparison is 3.6% APRC Representative.
YOUR HOME MAY BE REPOSSESSED, AS A LAST RESORT, IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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