Tesco Bank Mortgages
View at a glance all the mortgage products and rates available from the Tesco Bank. Using our mortgage comparison tools you can quickly compare Tesco against other leading lenders to see who is offering the best deals and rates. Search through the whole market by simply using the search filters to find your perfect mortgage lender.
Products: Mortgage Lenders
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About Tesco Bank Mortgages
Tesco Bank is fully owned by Tesco and has its own banking license, providing credit cards, savings, loans, current accounts, insurance and mortgages to its customers. It offers a range of mortgages for its customers so that they can find their way onto the property ladder. At present, Tesco Bank is offering three different fixed rate mortgage options for customers who want a predictable repayment rate for their mortgage term. The bank offers two, three and five-year fixed rate mortgages available at a maximum loan to value of 60% through to 85%. All the standard fixed rate mortgages cost you booking and product fees as well as early repayment charges. Fee-saver mortgages are available that hold no product fee, but these have a slightly higher APR.
From Tesco Bank, you can also get a two-year tracker mortgages that hold initial rates just above the Bank of England base rate. The tracker mortgages move to the Standard Variable Rate after the two-year term, and a fee-saver option is available for customers who’d rather avoid the product fee in favor of slightly higher interest rates. The Tesco Bank tracker mortgages also hold early repayment charges until a certain date.
The Tesco Clubcard Points
This is one of the biggest differentiating points of Tesco Bank mortgages. Tesco allows customers to use their supermarket Tesco Clubcard points to claim cashback on finance products, making it an especially attractive banking option for many. Customers who successfully apply for a mortgage can collect Clubcard points each time they make a monthly repayment on their mortgage, with one pointed awarded for every £4 of the repayment. Points can also be accumulated on overpayments.
The Core Features of Tesco Bank Mortgages
- Pay off your mortgage early. During the initial rate period, you can overpay by up to 20% of the outstanding balance each year without early repayment charge
- Collect Tesco Clubcard points on monthly repayments and any regular or lump sum overpayments.
- Choose between a mortgage with a product fee or one without a product fee
The Fixed Rate Mortgages
Tesco Bank’s 2, 3 and 5-year fixed rate mortgages give you the certainty of knowing that your repayments will stay the same for a set period. This makes it easier to manage your budget because your monthly repayments will stay the same. Once your fixed rate period has ended, you can move to their standard variable rate (SVR).
Tracker Rate Mortgages
Tesco bank’s tracker rate mortgage can help you take benefit of low rates. They offer 2 year tracker rate mortgage follows the Bank of England base rate, which may increase or decrease.
How does it work?
The quick mortgage calculator available at Tesco bank’s official website will give you a rough idea of how much you could borrow, what deposit you’ll need and tell you more about our mortgages and the rates available. Your solicitor or conveyancer will handle all the legal aspects when you buy a home. If you don’t have a solicitor or conveyancer, Tesco bank can refer you to LMS, a company which specialise in sourcing law firms for conveyancing transactions. If you’ve had the valuation and agreed the closing price, it’s time to apply for your mortgage. When you begin your application, whether it's online or over the phone, make sure you have all the information you need to hand.
The Final advice
If you want to stick to traditional financial solutions including 3 or 5-year fixed rate mortgage, with flexible monthly mortgage repayments for the initial period, Tesco bank is a convenient and user-friendly option. Tesco Bank has been an award-winning mortgage solutions provider and known for fast and prompt customer service.