Tesco Bank launches new higher Loan to Value products

April 26, 2015 by Brendan O'Neill

Property Market

As lenders continue to drop their rates in an attempt to secure a larger market share, Tesco Bank has joined in, reducing some of their rates by up to 0.8%, and offering tracker rate with a maximum Loan to Value (LTV) of 90%.

The new 2.6% tracker mortgage is available to those with at least a 10% deposit, with a competitive booking fee of £300. For those with a bigger deposit, there is a two-year fixed rate at just 1.29% up to 60% LTV, with a booking fee of £800, or mortgagors can choose 2.29% fixed for three years with no booking fee up to 75% LTV.

With regards to Tesco’s loyalty scheme and borrowers repaying Tesco Bank Mortgage, in return for every £4 made (up to their monthly repayment), they will receive one Clubcard point.

The managing director for Tesco Bank, David McCreadle, said:

“We want to make it easier for customers to make a move on the property ladder. Tesco Bank mortgages provide customers with great value and award-winning customer service, with the added bonus of Clubcard points on their repayments.”

Tesco has also announced that it plans to expand the distribution of its mortgage range to the intermediary market, and intends to launch in the first half of 2016.

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