Tesco chops rates across two and five-year fixed deals

Christina Hoghton
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Christina Hoghton

The lender is the latest to reduce its mortgage fees

Tesco Bank has joined the growing number of lenders to chop their mortgage rates over the last few weeks.

It announced today that it has reduced the rates on a selection of its two-year and five-year fixed rate mortgage products to help make it easier for customers to make a move on the property ladder.

The new deals include two fee-free mortgage products available at competitive rates:

  • A two-year fix at 1.88% for borrowers with 15% upfront, with no product fee
  • A two-year fix 1.78% for borrowers with 20% upfront, also with no product fee.

David McCreadie, managing director at Tesco Bank, said: “We want to help customers to buy or remortgage their home, and we are pleased to introduce our new reduced rates on a selection of our two-year and five-year mortgage products.

“We also offer customers the unique added benefit of collecting Clubcard points on their mortgage repayments.”

Customers can make regular or lump sum overpayments of up to 20% of the outstanding balance each year during the initial rate period, without having to pay an Early Repayment Charge. All remortgage products from Tesco Bank also include free valuation and free conveyancing.