You are here: Home - Mortgages - Buy To Let - News -

Tesco offers 1.99% fix; poised to lend £1bn at “affordable” rate

Written by:
Just launched mortgage lender Tesco Bank is offering its lowest ever deal with a two-year fixed rate at 1.99% for 60% Loan to Value borrowers.
Tesco offers 1.99% fix; poised to lend £1bn at “affordable” rate

The lender claimed the rate is a direct result of advanced plans to borrow from the Funding for Lending Scheme (FLS) managed by the Bank of England.

The mortgage rates start at 1.99% for a two-year fixed rate and 2.39% on a two-year fixed rate to 70% LTV, which are cuts of 0.65% and 0.40% respectively.

The product fee starts at £800, with a booking fee of £195 on purchase and remortgages.

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

Benny Higgins, chief executive of Tesco Bank, said: “We welcome the Funding for Lending Scheme, and are delighted to be able to pass on the benefit to our customers.

“We are committed to responsible lending and hope to enable our customers to borrow a further £1bn, over the next year, at affordable rates.

“We are well positioned to meet the financial needs of Tesco customers in more ways and I am delighted we are now able to offer these market leading mortgage rates, in addition to our popular and growing range of banking and insurance products.”

Andrew Hagger of said on pricing, the new mortgage lenders has come a long way in a short space of time.

“Since that initial launch on 6 August, Tesco Bank has really upped its game and the latest rate cuts announced today will give its high street rivals something to think about,” said Hagger.

“This is the third set of rate reductions in a little over six weeks, with the latest round on the back of the bank’s application to join the Funding for Lending Scheme (FLS). The sub 2% rate for the 60% LTV two-year fixed deal will be the deal that grabs all the headlines, with the rate cut by 0.65% and £300 shaved off the product fee, just ten days after it was originally launched.”

Tesco launched its first mortgage range in August this year, just 11 days after gaining its FSA authorisation. The bank has already increased its 2012 lending projection from £7.4 to £7.7bn.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Ofgem reforms will force energy companies to reveal cheapest tariffs

Energy industry watchdog Ofgem has set out plans to make energy bills simpler, fairer and cheaper for the consumer.