Mortgages
Tesco Bank unveils 1.68% five-year fix remortgage rate
Tesco Bank has introduced a five-year fixed-rate remortgage product and cut the rate for a similar two-year offering.
Both deals are available at 60% loan to value (LTV).
The lender said its new five-year mortgage at 1.68% with a £995 product fee was now the lowest on the market.
It also cut the rate on its two-year remortgage product at 60% LTV with no fee to 1.53%.
Both products will move onto the lender’s standard variable rate (currently 3.89%) at the end of the fixed-rate period and early repayment charges may apply.
Tesco Bank managing director David McCreadie, said: “We are pleased to introduce our new market-leading five-year fixed rate product for customers who are looking to remortgage their home, helping them to make their money go that little bit further.”
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Charlotte Nelson, finance expert at data site, Moneyfacts, said: “The Tesco Bank 1.68% five-year fixed rate mortgage is highly competitive and enters the market as the lowest deal in the five-year sector, making this a great option for remortgagors looking to keep monthly repayments low.
“The 1.53% two-year fixed rate mortgage is also a competitive option sitting amongst the top five lowest two-year fixed rates with no fee. As a result this deal is likely to be a cost-effective choice for those with the required 60% deposit.”