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The information in this section is designed to provide journalists and bloggers with the latest news from Tesco Bank. If you are a customer looking for information on the products and services we offer, please visit our customer website.

 
 
 

27 April, 2016

Tesco Bank introduces leading 5 year fixed mortgage rates

Tesco Bank is helping more customers make a move in the property market by cutting the rates on a selection of its 2, 3 and 5 year fixed rate and 2 year tracker mortgage products.

Among the new rates, the Bank’s range of 5 year fixed rate products are among the most competitive in the market and include:

  • 2.24% for the 60% LTV fixed for 5 years with no product fee1
  • 2.44% for the 75% LTV fixed for 5 years with £800 product fee2
  • 2.53% for the 80% LTV fixed for 5 years with £800 product fee3
  • 2.74% for the 85% LTV fixed for 5 years with £800 product fee4

Last week, Tesco Bank launched its new intermediary service - Tesco Mortgage Intermediaries – meaning that as well being able to access Tesco Bank’s competitive range of mortgages direct either online or by phone, customers now have the option to access Tesco Bank mortgages through London and Country mortgage brokers.

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 repayments5
  • 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
  • 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, Banking at Tesco Bank, commented:

“We want to make it easier for customers to buy their home, and our new reduced mortgage rates not only helps to make this more affordable, but having them available through brokers further widens the options open to customers looking to take the next step on the property ladder.”

About Tesco Bank Mortgages:

The following range of Tesco Bank mortgages is available through Tesco Bank and Tesco Mortgage Intermediaries: 

 

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 30/06/2018

60%

75%

80%

85%

90%

95%*

1.67%

1.72%

1.84%

1.94%

2.28%

N/A

£800

£800

£800

£800

£800

N/A

3.9%

3.9%

3.9%

3.9%

4.0%

N/A

1.91% (-0.16%)

1.96% (-0.16%)

2.08% (-0.16%)

2.18% (-0.16%)

2.52% (-0.16%)

3.89%

3.9%

3.9%

3.9%

3.9%

4.0%

4.2%

3 year fixed until 30/06/2019

60%

75%

80%

85%

90%

95%

1.99%

2.09% (-0.20%)

2.34%

2.34%

2.99%

N/A

£800

£800

£800

£800

£800

N/A

3.8%

3.8%

3.8%

3.8%

4.0%

N/A

2.15% (-0.24%)

2.25% (-0.44%)

2.50% (-0.24%)

2.50% (-0.24%)

3.15% (-0.24%)

4.49%

3.7%

3.8%

3.8%

3.8%

4.0%

4.4%

5 year fixed until 30/06/2021

60%

75%

80%

85%

90%

95%

2.14% (-0.20%)

2.44% (-0.05%)

2.53% (-0.06%)

2.74% (-0.05%)

3.39%

N/A

£800

£800

£800

£800

£800

N/A

3.5%

3.6%

3.6%

3.7%

4.0%

N/A

2.24% (-0.50%)

2.54% (-0.35%)

2.63% (-0.36%)

2.84% (-0.35%)

3.49% (-0.30%)

4.49%

3.5%

3.6%

3.6%

3.7%

4.0%

4.4%

2 year tracker until 30/06/2018

60%

75%

80%

85%

90%

1.35% (BoE** base rate plus 0.85%)

1.45% (BoE base rate plus 0.95%)

1.69% (BoE base rate plus 1.19%)

1.79% (BoE base rate plus 1.29%)

2.50% (BoE base rate plus 2.00%)

£800

£800

£800

£800

£800

3.8%

3.8%

3.9%

3.9%

4.0%

1.59% (BoE base rate plus 1.09%) (-0.16%)

1.69% (BoE base rate plus 1.19%) (-0.16%)

1.93% (BoE base rate plus 1.43%) (-0.16%)

2.03% (BoE base rate plus 1.53%) (-0.16%)

2.74% (BoE base rate plus 2.24% (-0.16%)

3.8%

3.8%

3.9%

3.9%

4.0%

*Tesco Bank’s 95% LTV mortgage products are only available direct either online or by phone and not through Tesco Mortgage Intermediaries

**BoE is Bank of England

All products will move onto the Tesco Bank Standard Variable Rate (currently 4.24%) at the end of the initial fixed or tracker rate period. Early Repayment Charges may apply during the initial fixed or tracker rate period.

 

ENDS

 

For more information and media enquires please contact:

Laura Moore (Tesco Bank)

Laura.Moore@i.tescobank.com

+44 (0) 131 479 1356 / +44 (0) 7525 582775

 

Notes to editors:

1 £195 non-refundable booking fee also applies

2 £195 non-refundable booking fee also applies

3£195 non-refundable booking fee also applies

4£195 non-refundable booking fee also applies

5Points are not collected on any fees or charges paid separately from monthly payments.

Points are also collected on overpayments, but not on any overpayment made to pay off the mortgage in full. Clubcard points will be received within 6 weeks of payment. The Clubcard scheme is administered by Tesco Stores. Tesco Stores is responsible for fulfilling the points.

 

Representative example: A mortgage of £182,000 with an assumed start date of  1/7/2016, payable over 25 years initially on a fixed rate for 3 years at 2.15%, and then on our current variable rate of 4.24% for the remaining 22 years, would require 36 monthly payments of £784.77 and 264 monthly payments of £961.96.

The total amount payable would be £282,519.53 made up of the loan amount plus interest of £100,209.53 and booking fee of £195. Please refer to your Mortgage Illustration for details on other fees payable on your mortgage.

The overall cost for comparison is 3.8% APRC Representative.

 

About Tesco Bank Mortgages

  • Tesco Bank mortgages are available online by visiting http://www.tescobank.com/mortgages or by phone, 0345 217 2050, between 8am-9pm Monday to Friday, 9am – 4pm Saturday, from our UK-based customer service team. They are also available through Tesco Mortgage Intermediaries http://intermediaries.tescobank.com
  • Tesco Bank mortgage products may be withdrawn or changed at any time.
  • All Tesco Bank mortgages are subject to a non-refundable booking fee and a product fee may apply depending on the product selected.
  • Subject to status and lending criteria

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

 

About us:

Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 6 million customers every day with everything from insuring their pets, to buying their first home. Our 4,000 colleagues serve our customers seven days a week from our four main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. 

Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. 173199. Registered Address: Interpoint Building, 22 Haymarket Yards, Edinburgh, EH12 5BH. www.tescobank.com

 

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Media team

For journalist enquiries only, contact the Tesco Bank Press Office on:

+44 (0)131 274 3630
+44 (0)7595 441 036

 

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