Tesco Bank Launches Its First 95% LTV Mortgages

1st May 2015

Tesco Bank is to help more first-time buyers get on the property ladder by launching its first range of 95% LTV mortgage products. The new range of 2, 3 and 5 year fixed rate products offer some of the most competitive rates currently available, have no product fee and reward the loyalty of customers with Clubcard points as they repay their mortgage.

The highlights of the new products include:

Mortgages of up 95% LTV, with no product fee (£195 non-refundable booking fee applies)
A competitive range of products, starting from 4.49%, fixed until 31/08/2017
Flexibility to make regular or lump sum overpayments of up to 20% of the outstanding balance each year during the initial rate period, without having to pay an Early Repayment Charge
Customers can collect one point for every £4 on their monthly repayments
*Available for first-time buyers and those looking to remortgage
David McCreadie, Managing Director, Banking at Tesco Bank, commented:

"We are delighted to extend our mortgage range by offering 95% LTV mortgages, which further widens the options available to customers. We appreciate that it can be difficult for customers to buy their first home, and hope that the combination of competitive rates and no fee will help more and more customers get onto the property ladder for the first time. Tesco Bank mortgages provide customers with great value, competitive rates and award-winning service, with the added bonus of Clubcard points on their repayments."

All products will move onto the Tesco Bank Standard Variable Rate (currently 4.24%) at the end of the initial fixed rate period. Early Repayment Charges may apply during the initial fixed or tracker rate period.

Tesco Bank recently won the Best Overall Personal Finance Provider and the Best Direct Mortgage Provider at the 2015 Moneynet Awards.

Tesco Bank mortgage products are straightforward and rewarding: customers can apply for up to two payment holidays per year, and those remortgaging will benefit from free standard legal fees and the first standard valuation.