Tesco Bank has cut the mortgage rate on a number of products, with rate cuts of up to 0.80%.
The range includes a two-year fixed rate charging just 1.29%.
Tesco now claims to offer some of the most competitive two, three and five-year fixed rates on the market.
And it has also introduced a new 90% LTV two-year tracker rate for the first time.
New mortgages include:
1.29% for the 2 year fixed 60% LTV with £800 product fee (plus £195 non-refundable booking fee)
2.29% for the 3 year fixed 75% LTV with no product fee (plus £195 non-refundable booking fee)
2.89% for the 3 year fixed 85% LTV with no product fee (plus £195 non-refundable booking fee)
3.79% for the 5 year fixed 90% LTV with £800 product fee (plus £195 non-refundable booking fee)
2.60% for the 2 year tracker at 90% LTV with £300 product fee (plus £195 non-refundable booking fee).
Tesco also rewards customers with Clubcard points as they repay their mortgage, collecting one point for every £4 on their monthly repayments.
Customers can also make regular or lump sum overpayments of up to 20% of the outstanding balance per annum during the initial rate period, without having to pay an early repayment charge.
Customers can apply for up to two payment holidays per year.
Those remortgaging will benefit from free standard legal fees and the first standard valuation.
David McCreadie, managing director, banking at Tesco Bank, said: "Our new mortgage products offer some of the most competitive rates available, and the introduction of our new 90% LTV two-year tracker rate widens the options available to customers."
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