Tesco Bank cuts mortgage rates

Tesco Bank cuts mortgage rates

 

Rates have been cut on select two and five year fixed-rates for remortgage, purchase and product transfers.

The lender will now offer fee-free two-year fixes of 1.92% at 80% loan to value (LTV), and 1.97% at 85% LTV, both for purchase, as part of the changes.

Charlotte Nelson from Moneyfacts.co.uk picked out the lender’s new five-year fixed-rate remortgage priced at 1.99% with a fee of £995 at 75% LTV, as an eye-catching addition to the market.

She said: “This deal allows overpayments of up to 20% of the outstanding balance. Borrowers can earn one Tesco Clubcard point for every £4 mortgage repayment.

“The 1.99% five-year fixed rate from Tesco Bank sits comfortably within the top 10 in its sector.

“With the added benefits of a free valuation and free legal fees, this could be an attractive option for remortgage customers looking to keep initial costs down.

“The extra Clubcard points will be the icing on the cake for regular Tesco shoppers.”

Leeds Building Society and TMW have also cut mortgage rates this week.