Tesco Bank has launched its lowest-ever tracker mortgage and cut rates across its fixed-rate product range.
The lender has introduced a 0.98 per cent interest rate for the 2-year tracker at 60 per cent loan-to-value, which comes with a £1,495 product fee.
Other highlights include 5-year fixed rates at 1.92 per cent up to 60 per cent LTV and 2.12 per cent at 75 per cent LTV, neither of which comes with a product fee.
The products are available direct and via intermediaries.
Tesco Bank managing director David McCreadie said: “We are pleased to introduce our new reduced rates on a selection of our 2, 3, 5-year and tracker mortgage products to help customers buy or remortgage their home.
“Alongside our competitive rates, we also offer customers the unique added benefit of collecting Clubcard points on their mortgage repayments.”
All products will move onto the Tesco Bank Standard Variable Rate (currently 3.89 per cent) at the end of the initial fixed rate period, and early repayment charges may apply during the initial period.
Robert Lewis, operations director at Heritage Financial Solutions in North Wales, commented: “From a headline rate point of view, it is very attractive.
“Tesco have only recently come on to the market, so none of our advisers have used them yet. It seems a great rate, but can they back it up when it comes to customer service? When any new lender comes to the market, I am always nervous as to whether they will be any good.”
simon.allin@ft.com
