Tesco Bank launches first range of 95% LTV products

Tesco Bank has launched its first range of 95 per cent LTV mortgages.

The range includes a 4.49 per cent two-year fix, and 4.99 per cent three- and five-year fixed rates.

Borrowers can repay up to 20 per cent of the outstanding balance each year without having to pay an early repayment charge.

The products are available for first-time buyers and those looking to remortgage.

Tesco Bank managing director of banking David McCreadie says: “We are delighted to extend our mortgage range by offering 95 per cent 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.”

Tesco’s mortgages are available online or over the phone, although the lender is planning to enter the broker market, as revealed by Mortgage Strategy in October.