The lender is now offering rates from 3.09% with fees, or 3.49% without fees to borrowers with a deposit of only 5%.
At the same time, Tesco has launched cashback of £500 and £1,000 on select two- and five-year purchase deals respectively.
Julian Hartley, director of mortgages, savings and loans at Tesco (pictured), 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.”
Investec cuts fixes and trackers
Investec has dropped rates on fixed and tracker mortgages from 80-85% loan to value (LTV).
Peter Izard, business development manager at Investec Private Bank, said: “A primary focus for us as a lender is to continue to adapt and change with the market, helping brokers work with their clients to achieve their goals and ambitions.
“We believe that by updating our mortgage offering, we are one step closer to doing so.
“We are pleased to announce this reduction in both variable and fixed rates and hope it will enable our clients to have greater choice and flexibility.”