Tesco Bank has launched its first range of 90 per cent loan-to-value mortgage products.
The range of two, three and 5-year fixed rate deals start from 3.49 per cent, fixed until 30 November 2016.
The range also offers flexibility to make regular or lump sum overpayments of up to 20 per cent of the outstanding balance each year during the initial rate period, without having to pay an early repayment charge.
Customers taking out a mortgage with Tesco Bank will also receive a ‘thank you’ with Clubcard points as they repay their mortgage, collecting one point for every £4 on monthly repayments.
David McCreadie, managing director for banking at Tesco Bank, said: “The extension of our range into the 90 per cent LTV market will allow us to help many more people make one of the most important purchases of their lives.”
All products will move onto the Tesco Bank standard variable rate - currently 4.24 per cent - at the end of the initial fixed rate period. Early repayment charges may apply during the initial fixed rate period.
Customers can apply for up to two payment holidays per year and those remortgaging will be offered free standard legal fees and the first standard valuation.
peter.walker@ft.com
