10 November, 2017
Tesco Bank to increase interest rates for savings and mortgage customers
Tesco Bank is to increase its underlying standard interest rates for savings and it’s Standard Variable Rate (SVR) for mortgages by 0.15%. The Bank’s decision to apply the increase to both savings and mortgage products reflects its desire to treat customers equitably and fairly.
Benny Higgins, Chief Executive of Tesco Bank said:
“We have consistently offered savings and mortgage customers some of the most competitive rates on the market. Following the Bank of England’s decision last week, we know savings customers expect us to help them by increasing interest rates.
“It is, however, critically important that we balance the needs of our savers with those of our borrowers and we have carefully considered how this change will affect our mortgage customers. We believe our approach of increasing rates for both savers and mortgage holders is equitable and fair in balancing the interests of customers.”
Tesco Bank’s underlying standard interest rate for savings products will increase by 0.15%, offering customers one of the most competitive underlying rates available. The Bank’s Standard Variable mortgage rate will increase to 4.04%, 0.27% below the market average rate of 4.31%*.
Tesco Bank savings customers’ interest rates will increase on 1st December, with mortgage customers being notified in advance of their rate increasing on 1st February.
For more information on Tesco Bank please visit: http://www.tescobank.com.
For more information and media enquiries please contact:
Tesco Bank press office
+44 (0) 131 274 3630 / +44 (0) 7595 331 036
Background notes to editors:
*UK Finance / Bank of England Mortgage data 8/11/2017
Representative example: A mortgage of £170,000 with an assumed start date of 01/03/2018 payable over 25 years initially on a fixed rate for 5 years at 2.13% and then on our current variable rate of 4.04% for the remaining 20 years would require 60 monthly payments of £731.36 and 240 monthly payments of £868.51. The total amount payable would be £252,439.43 made up of the loan amount plus interest of £82,324.43, 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 3.3% 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.
- A product fee may apply depending on the product selected.
- Subject to status and lending criteria.
*This number may be included as part of any inclusive call minutes provided by your phone operator.
Tesco Bank mortgages are subject to status and lending criteria. Your home may be repossessed, as a last resort, if you do not keep up repayments on your mortgage.
About Tesco Bank
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 5 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 three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7.
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For journalist enquiries only, contact the Tesco Bank Press Office on:
+44 (0)131 274 3630
+44 (0)7595 441 036