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Tesco Bank launches five-year fix at 2.89%

Tesco Bank has relaunched its mortgage range and now offers a five-year fixed rate up to 70 per cent at 2.89 per cent.

It has also launched a two-year fixed rate at 2.28 per cent up to 60 per cent LTV. Both the two and five-year deals have a £1,300 product fee and a £195 booking fee.

The lender also has a range of mortgages where the borrower has a choice between an £800 product fee or a fee-free deal, for an increased rate. It has also relaunched this range which now includes a number of two, three and five-year fixed rates, starting at 2.39 per cent, 2.79 per cent and 3.29 per cent, respectively.

Managing director of banking David McCreadie says: “We are delighted to be offering a new range of competitive mortgages, particularly as we enter one of the busier periods for the housing market. These products combine competitive rates and fees with the ‘thank-you’ of Clubcard points and underline our commitment to meeting the financial services needs of Tesco customers.”

The table below shows the changes to Tesco’s mortgage range:

Rates

Tesco’s mortgage range is only available direct but at 2.89 per cent its new five-year fix is in the best-buy tables, on rates, when compared to other deals of the same length.

London & Country associate director of mortgages David Hollingworth says: “It is a good rate and is one of the lowest in the market but you have to factor in the fee and work out whether it is best value for your client compared to other products.”

See the best-buy table below to see how it compares to other five-year fixed rates currently on offer:

LCBBuy

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