Tesco Bank has launched several market-leading mortgage rates for those who wish to fix their home loan for five years.
Customers who have a 25 per cent deposit can pay as little as 1.99 per cent for a fixed rate mortgage over five years, without an upfront fee , while the company is also offering a 1.94 per cent rate with a £995 fee for those with a 20 per cent deposit.
Borrowers can also fix for three years for 1.43 per cent at 60 per cent loan-to-value (LTV) for a £995 fee or 2.69 per cent if they have a 10 per cent deposit with no fee.
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
David McCreadie, managing director at Tesco Bank, said more people were looking to take longer-term fixed rates.
He said: "I am delighted that we can offer these market-leading rates as well as reducing the rates on a selection of our two year, three year and five year products to help customers’ money go that little bit further."
Tesco Bank mortgage customers can collect one Clubcard point for every £4 on their monthly repayments.
Matthew Watson, mortgage adviser at The Mortgage Shop in Kent, said that he believed that the five-year deals offered a good rate for customers wanting to fix.
However, he pointed out that Tesco mortgages were not available through all intermediary networks.
rosie.murray-west@ft.com
