Rates for borrowers with small deposits fall

A new selection of even lower fixed rates aimed at those with smaller deposits has been released by Tesco Bank at a record low, putting it at the top of the best buy tables.

This could be great news for first-time buyers, as it means that borrowers with as little as 5% saved as a deposit can take advantage of the low rates.

With rates of 4.19% fixed for two years and 4.69% for five, the new deal could help Tesco Bank to compete against some of its more established rivals within the mortgage market industry.

The product’s associated booking fee is just as competitive at only £195. With the deposit often being the hardest thing to get together when looking to purchase a first home, these new lower rates and fees could attract new business to Tesco Bank.

It is the combination of lower rates and associated fees that has propelled Tesco Bank up the best buy table. While both Tesco Bank and Chelsea Building Society offer a five-year fixed at 4.69%, if the customer has a 5% deposit, the latter’s deal comes with a £1,675 fee. This means that over a 25-year term, a mortgage of £150,000 over the initial five years would leave the client £1,480 better off with Tesco Bank.

Having qualified following the completion of your CeMAP training and associated exams, you will be able to assess the individual needs of your customers before advising them on the most suitable mortgage package for their needs.



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