Two lenders have launched medium-term fixed rates – Leeds Building Society and Tesco Bank.

The Leeds deal is actually a reduction of the rate on its existing five-year fixed mortgage, which is now priced at 2.36% until 31.10.23.

This deal is open to all applicants – first-time buyers, remortgagors and home movers – who wish to borrow at 75% loan-to-value. It comes with a fee of £999, which can be added to the mortgage.

An incentive package of free valuation for all borrowers and help towards costs for remortgage customers is included.

Financial information provider Moneyfacts, said: “The 2.36% five-year rate from Leeds Building Society sits comfortably in its sector. The added bonus of a comprehensive incentive package increases its appeal to borrowers with the required 25% deposit looking to keep initial costs down.”

Every little helps

Tesco Bank has also launched a five-year fixed rate mortgage, priced at 2.30% until 30.11.23. This deal is for remortgage customers only who wish to borrow from £40,000 at 80% loan-to-value, so it’s available to those with a smaller equity level than the Leeds deal.

No fee is payable and an incentive package of free valuation and £250 cashback is available. This deal allows overpayments of up to 20% of the outstanding balance and borrowers will be able to earn one Tesco Clubcard point for every £4 mortgage repayment.

Moneyfacts said: “Tesco Bank’s 2.30% five-year fixed rate mortgage is reasonably competitive and sits comfortably in the market. The added benefits of a great incentive package including cashback and no fee could make this deal a cost-effective option for remortgage customers.”