Tesco launches into 95pc LTV market
Tesco is offering a 2-year fix at 4.49%, a 3-year fix at 4.99% and a 5-year fix at 4.99%.
David McCreadie, managing director, banking at Tesco Bank, said: “We are delighted to extend our mortgage range by offering 95% LTV mortgages, which further widens the options available to customers.
“We appreciate that it can be difficult for customers to buy their first home, and hope that the combination of competitive rates and no fee will help more and more customers get onto the property ladder for the first time.
“Tesco Bank mortgages provide customers with great value, competitive rates and award-winning service, with the added bonus of Clubcard points on their repayments.”
Borrowers will move onto Tesco’s standard variable rate at the end of the period (currently 4.24%), while the bank charges a £195 product fee.
Customers can make overpayments of up to 20% of the outstanding balance per year, while both first-time buyers and those looking to remortgage are eligible to take out its 95% LTV products.