Tesco joins mortgage market
Tesco Bank is to launch a number of mortgages on Monday, as they look to attack the currently stagnant market.
As well as going in with “competetive” rates, the high street giant is also offering Clubcard holders the chance to be rewarded with points as they repay their mortgage - collecting one point for every £4 on their monthly mortgage repayments.
The range includes two, three and five-year fixed rate mortgages, and a two-year base rate tracker.
Rates start at 3.19 per cent, for a two year fixed, maximum loan-to-value (LTV) of 70% and Tesco Bank offers mortgages up to a maximum of 80 per cent LTV.
All products will move onto the Tesco Bank Standard Variable Rate at the end of the initial fixed or tracker rate period.
There is a flat booking fee of £195 on all products and customers can choose between a £0 and £800 product fee option.
Tesco chief executive Philip Clarke said: “Customers want choice in banking from a brand they know and trust to deal with them fairly. The launch of Tesco Bank mortgages is a major milestone towards offering Tesco customers a full retail banking service.”
Benny Higgins, chief executive of Tesco Bank, added: “Entering the mortgage market is a significant step in broadening the products we offer to Tesco customers. With a focus on serving Tesco customers for the long-term, we will take responsible lending decisions and have developed a mortgage business to meet our customers' needs now and into the future.
“We begin as we plan to go on - launching a product for Tesco customers designed to meet their expectations of value, customer service and reward.”