The lender, which launched its first set of mortgages last month, has made changes to a number of fixed and tracker mortgages in its range.

Tesco Bank’s two-year fixed rate mortgage has been cut from 3.19% to 2.99% while its three-year fix is lowered by 0.41% to 3.28%. A five-year fix has also been reduced by 0.5% to 3.39%.

All three new products are available up to 70% LTV with a £195 booking fee and £800 product fee.

A two-year tracker has also been reduced to 2.95% and is available up to 70% LTV with the same fees. All products are open to homebuyers and remortgage customers.

Tesco Bank customers will continue to be rewarded with Clubcard points as they repay their mortgage at a rate of one point for every £4 repaid on their monthly mortgage.

David McCreadie, managing director of banking at Tesco Bank, said: “We’re pleased to offer customers some good news by reducing our rates to as low as 2.95%.

“Today’s rate changes once again underline Tesco Bank’s commitment to offering highly competitive banking products which meet our customers’ needs today and as they continue to bank with us into the future.”