Tesco Bank is introducing a two-year fixed rate charged at 3.29%, a three-year fix at 3.59% and a five-year fix at 3.69%.

It is also offering a two-year tracker charged at 3.25%.

All the deals area available up to 85% LTV, making them more accessible than its former deals, which were only offered up to 80% LTV.

A booking fee of £195 is payable on each deal and more fees may be charged.

Borrowers who take out a mortgage with Tesco Bank also get one Tesco Clubcard point for every £4 on their monthly mortgage repayments.

David McCreadie, managing director of banking, said:

“Our mortgage products combine all the hallmarks that customers expect and deserve from a Tesco Bank mortgage; great rates, competitive fees and the added ‘thank-you’ of Clubcard points.”