Tesco Bank cuts rates on fixed rate loans

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Tesco Bank is cutting rates on its fixed rate house purchase loans.

The lender is cutting rates on its two-year loans to start from 2.49 per cent at 90 per cent LTV with no fee.

Tesco’s three-year fixes now start from 1.99 per cent at 80 per cent LTV with a £995 fee.

Tesco is also selling a three-year fix at 2.34 per cent at 80 per cent LTV with no fee.

Meanwhile the lender’s five-year mortgages now start at 2.28 per cent at 80 per cent with a £995 fee.

Tesco Bank managing director David McCreadie says: “At Tesco Bank, we want to make it easier for customers to buy or remortgage their home, and our new mortgage rates help to make it more affordable for customers as they take their next steps on the property ladder.”

Tesco Bank mortgage customers collect Clubcard points as they repay their mortgage.