Rates for the two-year fixed rate start from 2.64% while the five-year fix starts at 3.19%. Products come with a product fee of £1,100 plus a booking fee of £195.

In addition, Tesco Bank has reduced its mortgage rates across its existing mortgage products with rates starting from 2.64%.

The reductions apply to both fixed rate and tracker mortgages, whether customers are remortgaging or buying a new home.

Tesco Clubcard holders are rewarded with Clubcard points as they repay their mortgage, and collect one point for every £4 on their monthly mortgage repayments.

Points are not collected on any fees or charges paid separately from monthly payments.

David McCreadie, managing director of banking at Tesco Bank, said:

“We are delighted to be extending our mortgage range to offer customers more choice. These products underline Tesco Bank’s commitment to offering great value mortgages that have competitive rates and fees, as well as rewarding customer loyalty with Clubcard points.”

The full mortgage range is on Tesco Bank’s website.