Tesco Bank launch new two and five-year fixed rate mortgages

Tesco Bank has announced that it is to launch new products in its mortgage range.

It will now offer two and five-year fixed rate mortgages for borrowers with a 60 per cent loan-to-value (LTV) ratio.

Its new two-year fixed rate mortgage charges 2.64 per cent and its five-year fixed rate mortgage charges 3.19 per cent. Both mortgages have a product fee of £1,100 and a booking fee of £195.

Tesco Bank has also cut rates on some of its other fixed rate and tracker mortgages.

Tesco Bank mortgage customers can make overpayments of up to 20 per cent of the mortgage debt each year during the initial rate period without incurring an early repayment charge.

Those who take out a tracker mortgage can opt for a ‘switch and fix’ facility which allows borrowers to move to a fixed rate if they want the option of knowing what their monthly payments will be.

David McCreadie, managing director of banking at Tesco Bank, said: “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.”

All Tesco Clubcard holders are rewarded with Clubcard points as they repay their mortgage, and collect one point for every £4 on their monthly mortgage repayments.