Tesco Bank has reduced the rate on its five-year fixed rate mortgage and is offering some 'icing on the cake' in terms of clubcard points.
Tesco Bank has reduced the rate on its five-year fixed rate mortgage, which is now priced at 2.01 per cent to 31 May 2023.
This deal is for first and second-time buyers who wish to borrow £40,000 or more at 60 per cent of the total loan-to-value (LTV).
Tesco Bank's lending areas are: England and Wales; Northern Ireland; and Scotland, including the following Islands: Bute, Lewis and Harris, Mainland Orkney, Mainland Shetland, Skye, Arran, Mull and Islay.
According to the lender, no fee is payable and an incentive package of a free valuation is available.
This deal allows overpayments of up to 20 per cent of the outstanding balance.
Borrowers will be able to earn one Tesco Clubcard point for every £4 of their mortgage repaid as well as on any regular or occasional lump-sum overpayments clients may make, unless the overpayment is to pay off the mortgage in full.
Charlotte Nelson, spokesperson for Moneyfacts, said: "The 2.01 per cent five-year fixed rate from Tesco Bank sits comfortably in the top of the market.
"With the added benefits of a free valuation and no fee, this could be an attractive option for borrowers looking to keep initial costs down. The extra Clubcard points will be the icing on the cake for regular Tesco shoppers."
simoney.kyriakou@ft.com
