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Tesco Bank cuts mortgage rates

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Tesco Bank has reduced the cost of its mortgages and is offering a 1.99% two-year fixed rate again.

The lender’s 1.99% two-year fixed rate mortgage is available up to a maximum of 60% loan-to-value (LTV), with a £1,600 fee.

Tesco Bank offered a 1.99% fixed rate last Autumn, but withdrew it after a month due to high demand.

The new range includes a 2.29% 70% LTV with a £1,300 fee, or 2.69% with no fee and a two-year fixed to 75% offered at 2.59% or 2.99% with no fee.

Customers taking out a mortgage with Tesco Bank will also receive a ‘thank-you’ with Clubcard points as they repay their mortgage, collecting one point for every £4 on their monthly mortgage repayments.

David McCreadie, managing director of banking, said: “I am delighted that these rate reductions make Tesco Bank mortgages some of the most competitive on the market. We want customers to be able to choose from a range of mortgages that combine great rates, good service with the ‘thank you’ of Clubcard points, and believe our new products allow customers to do just that.”

Tesco Bank launched into the mortgage market in August 2012 after several months delay waiting for FSA authorisation.

To work out how much a Tesco Bank mortgage might cost you, why not visit our calculators?

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