Tesco cuts first-time buyer rates

Tesco Bank is cutting rates on its 95% LTV mortgage products aimed at first-time buyers.

It claims its new 95% LTV five-year fixed first-time buyer rate is one of the most competitive on the market at 4.69% with no product fee.

Tesco has also cut rates on some of its two, three and five-year fixed rate and two-year tracker products.

New rates include:

4.69% for the 95% LTV fixed for five years with no product fee.

1.25% for the 75% LTV two-year tracker product with £800 product fee.

4.19% for the 95% LTV fixed for two-years with no product fee.

David McCreadie, managing director, banking at Tesco Bank, said: “We are delighted to widen the options available to customers, and first-time buyers in particular, by launching these new highly competitive offers.

"We know it can be difficult for first-time buyers to get on the property ladder, and we hope that the new rates on our 95% LTV mortgage products will make it a little bit easier.”

Tesco customers collect Clubcard points as they repay their mortgage, with one point for every £4 on their monthly repayments.

They have the 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

Deals are available for first-time buyers, home movers and those looking to remortgage.

Those remortgaging will also benefit from free standard legal fees and the first standard valuation