Tesco Bank has reduced interest rates for homebuyers and remortgagors looking to fix their mortgage rate.

It has cut fixed rates on 16 mortgages for those with a modest 10% deposit right up to borrowers with 40% of the property’s value as equity.

The cuts to the lender’s two-, three- and five-year fixed rate mortgages are available on a fee-free basis or with a £995 fee.

The competitive new rates include a fee-free, five-year fixed rate for those with 25% upfront at 1.99%, and a 1.94% deal for those with a 20% deposit, which comes with a fee of £995.

Managing director of Tesco Bank, David McCreadie, said that five-year fixes remained popular with borrowers. He added: “As an extra little help, Tesco Bank Mortgage customers can also collect Clubcard points on their mortgage repayments.”