As well as cutting its rates by up to 0.7%, all Tesco Bank’s fee-based mortgages now have a single product fee of £800 with a £195 non-refundable booking fee.
David McCreadie, managing director, banking at Tesco Bank said: “We want to do everything we can to help more customers purchase their own home, and we are delighted that our new two-year, three-year and five-year fixed rate mortgages are among the most competitive rates available.”
Earlier this month it was reported that Tesco was considering selling a stake of its Tesco Bank division for up to £1bn in order to shore up its balance sheet.
The troubled retailer is said to be considering a partial float of its banking business in order to raise between £500m-£1bn.