22 November, 2018
Tesco Bank to offer highly competitive new mortgages
Tesco Bank has today launched a new range of mortgages to help customers take the next step on the property ladder. By reducing rates on its 2 year and 5 year fixed rate House Purchase mortgages to 3.09% (95% LTV) and 3.49% (95% LTV) with no product fee, the Bank is offering some of the most competitive rates on the market. As an extra little help, customers can also collect Tesco Clubcard points on their monthly repayments.
Tesco Bank has also launched cashback on a new range of House Purchase mortgage products. Customers looking to buy a new home can now benefit from cashback of £500 or £1000 on a range of 2 year and 5 year fixed rate mortgages.
This extra little help provides customers with greater choice when selecting a mortgage, allowing them to opt for lower monthly payments or cashback of £500 or £1000 on completion, depending on the product selected. All Tesco Bank mortgages offer a free valuation service.
|Product||Max LTV||House Purchase (HP) or Remortgage (RM)||Rate||Cashback||Product Fee||APR|
|2 year fixed until 31/01/2021||90%||HP||2.37%||£500||£0||3.8%|
|5 year fixed until 31/01/2024||85%||HP||2.37%||£1000||£995||3.4%|
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 will apply during the initial fixed rate period.
Julian Hartley, Director of Mortgages, Savings and Loans said:
“We want to offer customers great value and service and today’s new mortgages deliver on that commitment. By enhancing our House Purchase range of mortgages with the addition of Cashback, we are providing customers with an extra helpful choice, alongside our consistently competitive fixed rate mortgages. These products are yet another example of Tesco Bank listening to customers and providing greater choice and flexibility across our range of mortgages.”
Notes to editors:
- Cashback products have a minimum loan size of £100,000.
- We offer 4.5 times loan to income up to 95% LTV.
For media enquires or further information please contact:
Tesco Bank press office: 0131 274 3630 / +44 (0) 7595 441 036
A mortgage of £147,000 with an assumed start date of 01/02/2019 payable over 40 years initially on a fixed rate for 2 years at 3.09% and then on our current variable rate of 4.04% for the remaining 38 years would require 24 monthly payments of £533.89 and 456 monthly payments of £614.73.
The total amount payable would be £280,080.84 made up of the loan amount plus interest of £132,965.84, 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 2.9% APRC Representative.
Tesco Clubcard Points:
Tesco Bank Mortgage customers collect 1 Clubcard point for every £4 on their monthly repayments and any regular or lump sum overpayment. Clubcard points collection rates are subject to change. Customers won’t collect Clubcard points on any fees or charges paid separately from their mortgage payment, or on any overpayment they make to pay the mortgage off in full. 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.
About Tesco Bank Mortgages:
Tesco Bank has been offering an award winning range of mortgage and remortgage products since August 2012. Our customers benefit from the additional help of Clubcard points, giving them access to a range of Clubcard Reward Partners.
YOUR HOME MAY BE REPOSSESSED, AS A LAST RESORT, IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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. Tesco Bank participates in the Chartered Banker Professional Standards Board.
Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. SC173199. Registered Office: 2 South Gyle Crescent, Edinburgh,EH12 9FQ
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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