Tesco Bank has launched two new 60 per cent loan-to-value fixed rate products and cut its rates by up to 0.4 per cent.
The two new products are available at 2.64 per cent for a two-year fixed rate and 3.19 per cent for a five-year fixed rate. Both products come with a £1,100 product fee and a £195 booking fee.
The lender has also cut its rates by up to 0.4 per cent.
Tesco has cut its two-year fixed rate at 70 per cent LTV from 2.99 per cent to 2.79 per cent, a two-year fixed rate at 75 per cent LTV from 3.39 per cent to 2.99 per cent and a two-year fixed rate at 80 per cent LTV from 3.89 per cent to 3.79 per cent. The products come with an £800 product fee and £195 booking fee. It has also cut its fee-free range of two-year fixed rates by up to 0.4 per cent.
The lender has cut a three-year fixed rate at 70 per cent LTV from 3.28 per cent to 2.99 per cent, a three-year fix at 75 per cent from 3.79 per cent to 3.39 per cent and an 80 per cent LTV product from 4.39 per cent to 3.99 per cent. The products come with an £800 product fee and £195 booking fee.The lender’s fee-free range has also been cut by up to 0.4 per cent.
Tesco has cut its 75 per cent LTV five-year fixed rate from 3.79 per cent to 3.69 per cent and its 80 per cent LTV five-year fixed rate from 4.59 per cent to 4.39 per cent. Both products have an £800 product fee and £150 booking fee. Tesco has cut its fee-free range of five-year fixes by up to 0.2 per cent.
All products move onto Tesco’s SVR, which is currently 4.24 per cent.
Tesco Clubcard holders will collect one point for every £4 they repay on their mortgage each month.
The products are only available online or via the telephone. Tesco says it has no plans to offer mortgages through intermediaries.
Tesco Bank managing director of banking David McCreadie says: “We are delighted to be extending our mortgage range to offer customers more choice. These products underline Tesco Bank’s commitment to offering great value mortgages that have competitive rates and fees, as well as rewarding customer loyalty with Clubcard points.”