Tesco cuts cost of first-time buyer mortgages

 House keys

Tesco Bank has repriced its first-time buyer mortgage range, and cut the cost of selected fixed rate deals.

Its new first-time buyer deals include a five-year fix at 3.78 per cent, at 95 per cent LTV. Previously this was priced at 4 per cent.

At the same LTV bracket, Tesco is also offering a three-year fix at 3.69 per cent (previously 3.94 per cent) and a two-year fix at 3.38 per cent (previously 3.89 per cent).

All three mortgages do not have any product fee, and are only available for house purchase.

At 90 per cent LTV, Tesco is offering a five-year fix at 2.57 per cent for purchases, (previously 2.64 per cent) or a rate of 2.59 per cent for those remortgaging (previously 2.65 per cent). Both are fee-free.

The supermarket bank is also offering the option to pay a rate of 2.47 per cent with a £995 fee. This was previously available at a rate of 2.59 per cent. It is only available for purchases.

At 90 per cent LTV, Tesco is offering a two-year fix at 2.04 per cent for purchases, (previously 2.27 per cent) or 2.19 per cent for remortgaging (previously 2.34 per cent). Again, neither has a product fee.

At the same time Tesco had reduced rates marginally on its five- and two-year fixes at lower LTV brackets. These include a reduction from 1.93 per cent to 1.9 per cent on its two-year fixed rate remortgage product, at 80 per cent LTV.

Tesco’s director of mortgages, savings and loans Julian Hartley says: “We are delighted to launch a new range of mortgage products while also reducing a number of our mortgage rates.”

 

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