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27 July, 2017

Tesco Bank introduces new market-leading 5 year fixed rate remortgage products

Tesco Bank has introduced two new market-leading 5 year fixed rate remortgage products to help make it easier for customers who are looking to remortgage their home. The Bank has also reduced the rates across a selection of its 2 year, 3 year and 5 year fixed rate house purchase and remortgage products.

The following new house purchase and remortgage products are available through Tesco Bank and Tesco Mortgage Intermediaries:

Product Max LTV House Purchase (HP) or Remortgage (RM) Rate Product Fee APR
2 year fixed until 30/09/2019

75%

80%

85%

85%

90%

90%

90%

90%

RM

RM

RM

RM

HP

HP

RM

RM

1.74%

1.74%

1.54%

1.88%

2.14%

2.49%

2.14%

2.49%

£0

£0

£995

£0

£995

£0

£995

£0

3.6%

3.6%

3.6%

3.6%

3.7%

3.7%

3.7%

3.7%

3 year fixed until 30/09/2020

60%

75%

75%

80%

85%

85%

90%

90%

RM

RM

RM

RM

RM

HP

RM

RM

1.88%

1.84%

2.02%

2.18%

2.44%

2.44%

2.75%

2.99%

£0

£995

£0

£0

£0

£0

£995

£0

3.4%

3.5%

3.5%

3.5%

3.6%

3.5%

3.5%

3.6%

5 year fixed until 30/09/2022

60%

75%

75%

75%

80%

80%

85%

85%

85%

85%

RM

HP

RM

RM

RM

RM 

HP

HP

RM

RM

1.88%*

1.90%

1.84%

2.02%

2.04%

2.18%**

2.29%

2.45%

2.29%

2.44%

£0

£995

£995

£0

£995

£0

£995

£0

£995

£0

3.1%

3.2%

3.2%

3.2%

3.2%

3.5%

3.3%

3.4%

3.3%

3.4%

All products will move onto the Tesco Bank Standard Variable Rate (currently 3.89%) at the end of the initial fixed rate period. Early Repayment Charges may apply during the initial fixed rate period. 

David McCreadie, Managing Director at Tesco Bank, commented:

“We are always looking to deliver great value mortgages and so as more customers look to take fixed rate mortgages, I am delighted that we can respond by offering these market-leading rates as well as reducing our rates on a selection of our 2 year, 3 year and 5 year products to help customers’ money go that little bit further.  As an extra little help, Tesco Bank Mortgage customers also collect Clubcard points on their mortgage repayments giving them access to the great benefits provided by Tesco Reward partners including family meals and days out.”

Tesco Bank Mortgage customers can collect one Clubcard point for every £4 on their monthly repayments.*** Customers also have the flexibility to make regular or lump sum overpayments of up to 20% of the outstanding balance each year during the initial rate period, without having to pay an Early Repayment Charge. All house purchase and remortgage products from Tesco Bank also include free valuation.

The full range of Tesco Mortgage products for home buyers and those remortgaging is available at http://www.tescobank.com/mortgages

 

ENDS

 

For more information and media enquiries please contact:

Laura Moore (Tesco Bank)

Laura.Moore@tescobank.com

+44 (0) 131 274 3630 / +44 (0) 7525 582775

 

Notes to editors:

*This product is leading in the direct market as of 27th July 2017

**This product is leading in the direct and broker market as of 27th July 2017

***Points are not collected on any fees or charges paid separately from monthly payments. Clubcard points collection rates are subject to change. Points are also collected on overpayments, but not on any overpayment made to pay off the mortgage in full. Clubcard points will be added within 6 weeks of payment. The Tesco Clubcard Scheme is administered by Tesco Stores Limited, Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, AL7 1GA, who are responsible for fulfilling points.

                                                               

Representative example: A mortgage of £170,000 with an assumed start date of  01/10/2017 payable over 25 years initially on a fixed rate for 5 years at 1.88% and then on our current variable rate of 3.89% for the remaining 20 years would require 60 monthly payments of £710.66 and 240 monthly payments of £852.70. The total amount payable would be £247,403.62 made up of the loan amount plus interest of £77,288.62, a product fee of £0 and a valuation fee of £0.

Please refer to your Mortgage Illustration for details on other fees payable on your mortgage.

The overall cost for comparison is 3.1% APRC Representative.

 

About Tesco Bank Mortgages

Tesco Bank mortgages are available online by visiting http://www.tescobank.com/mortgages or by phone, 0345 217 2050*, between 8am-9pm Monday to Friday, 9am – 4pm Saturday, from our UK-based customer service team. They are also available through Tesco Mortgage Intermediaries http://intermediaries.tescobank.com

  • Tesco Bank mortgage products may be withdrawn or changed at any time.
  • A product fee may apply depending on the product selected.
  • Subject to status and lending criteria.

*This number may be included as part of any inclusive call minutes provided by your phone operator.

 

YOUR HOME MAY BE REPOSSESSED, AS A LAST RESORT, IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

 

About us:

Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 6 million customers every day with everything from insuring their pets, to buying their first home. Our 4,000 colleagues serve our customers seven days a week from our four main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. 

Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. 173199. Registered Address: EHQ, 2 South Gyle Crescent, Edinburgh, EH12 9FQ. www.tescobank.com

 

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Media team

For journalist enquiries only, contact the Tesco Bank Press Office on:

+44 (0)131 274 3630
+44 (0)7595 441 036

 

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