Tesco’s bid for world domination continues with launch into mortgage market
Tesco Bank made its mortgage market debut this week, launching two, three and five year fixed rates products and a two-year tracker mortgages directly to home buyers.
The move has been long anticipated after the bank had originally planned to launch its mortgage range last year. However IT problems saw the move pushed back 12 months.
The products are available up to 80 per cent loan to value (LTV) with rates starting from 3.19 per cent for fixed products and 2.69 per cent for trackers. There is also a fee free product within the range, saving borrowers around £800.
Tesco Clubcard holders will also be able to collect one point for every £4 they pay off their mortgage each month. This would mean a £1000 monthly mortgage repayment would earn 250 Clubcard points.
However the lenders move to offer its range on a direct-only basis has raised some concerns that customer lured to such products will miss out on an advised mortgage process which, due to the instability of the property market, may be to their detriment.
The products are currently only available online or via the telephone.
Content correct at time of publication