Tesco Bank, 95% LTV mortgage, two-year fix at 3.94%, zero fee, Clubcard points
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Tesco Bank, 95% LTV mortgage, two-year fix at 3.94%, zero fee, Clubcard points

9
Found 8th Dec 2017
Another 95% mortgage for people with just 5% deposit or equity.

Tesco Bank has a two-year fix at 3.94%, fixed for two years. There’s no fee and you get free valuation.

The deal is for house purchasers (i.e. not remortgagers) who wish to borrow £40,000 or more.

This deal allows overpayments of up to 20% of the outstanding balance each year.

Borrowers will be able to earn one Tesco Clubcard point for every £4 mortgage payment.

Moneyfacts describes this product as “an attractive option for borrowers looking to keep initial costs down.”

Clubcard example
A £1,000 mortgage payment each month would earn 250 points. This works out to 3,000 points each year – worth £30 in store. However, you can trade up Clubcard
points for up to four times’ their value if you trade them for Clubcard Boost
tokens to spend with certain partners. So, you can turn the £30 into £120.

Comparing deals
As always, when you compare mortgage deals you need to add together the monthly payments for the fixed period (2 x 12 = 24 for this deal) plus the arrangement fee (zero in this case) minus any cashback to arrive at the total cost.
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9 Comments
Any ideas for how long their mortgage offer is valid for ? 3 or 6 months ? Need to remortgage in June and would like to secure a good offer asap before something goes wrong with BoE
Edited by: "ms84" 8th Dec 2017
Deal says not for remortgage ??
ms842 h, 18 m ago

Any ideas for how long their mortgage offer is valid for ? 3 or 6 months ? …Any ideas for how long their mortgage offer is valid for ? 3 or 6 months ? Need to remortgage in June and would like to secure a good offer asap before something goes wrong with BoE


I've just secured a new deal with First Direct 6 months before the end of my current fixed deal. Best to call yr current company.
TB offer is valid for 6 months 😁
Thanks for the info, good to know about FD too

steventrafford4 h, 34 m ago

Deal says not for remortgage ??


Would be a bit difficult to remortgage with 95% LTV I was looking at their other options
Edited by: "ms84" 8th Dec 2017
ms848th Dec

Thanks for the info, good to know about FD too Would be a bit …Thanks for the info, good to know about FD too Would be a bit difficult to remortgage with 95% LTV I was looking at their other options


As in pay the mortgage off and then take a new mortgage! There is a big problem with that though! Generally you need the new mortgage to pay off the existing! If you apply for a new one they will know you have the existing. Unless you have a spare hundred grand sitting around.

Mortgages are not structured like credit cards where you can take on a new one and then decide to pay off the existing one. The banks will pay the solicister not you. And on a mortgage application they will know you have an existing so will not lend you the money unless you remortgage. Your best bet is to pay off the mortgage quicker by making over payments if you can. No interest is due on extra payments you have made
Anon326 h, 41 m ago

As in pay the mortgage off and then take a new mortgage! There is a big …As in pay the mortgage off and then take a new mortgage! There is a big problem with that though! Generally you need the new mortgage to pay off the existing! If you apply for a new one they will know you have the existing. Unless you have a spare hundred grand sitting around. Mortgages are not structured like credit cards where you can take on a new one and then decide to pay off the existing one. The banks will pay the solicister not you. And on a mortgage application they will know you have an existing so will not lend you the money unless you remortgage. Your best bet is to pay off the mortgage quicker by making over payments if you can. No interest is due on extra payments you have made


Bank gonna issue me an offer in January for remortgage valid for six months. I can take it or leave it, they don't care unless I accept it. In april/may I will check the market for a better option, if not found I'm gonna accept the one I already have. That is the plan

PS: as it will be my first remortgage I might be wrong about the way it works but it should be pretty straightforward imo
Edited by: "ms84" 9th Dec 2017
ms842 h, 22 m ago

Bank gonna issue me an offer in January for remortgage valid for six …Bank gonna issue me an offer in January for remortgage valid for six months. I can take it or leave it, they don't care unless I accept it. In april/may I will check the market for a better option, if not found I'm gonna accept the one I already have. That is the plan PS: as it will be my first remortgage I might be wrong about the way it works but it should be pretty straightforward imo


You might want to check terms. As I'm sure if you reject the offer any fees included as part of remortgage I.e. valuation or any part of any conveyancing work done todate becomes payable. Also if you reject and reapply in April how long will you have to get your new offer in place prior to old product ends
satty838 h, 21 m ago

You might want to check terms. As I'm sure if you reject the offer any …You might want to check terms. As I'm sure if you reject the offer any fees included as part of remortgage I.e. valuation or any part of any conveyancing work done todate becomes payable. Also if you reject and reapply in April how long will you have to get your new offer in place prior to old product ends



When I was taking my mortgage I had an offer from my bank (Natwest), another one from Barclays and ended up with my broker offer from Halifax. Nothing will be made by the bank (like valuation) unless I accept the offer. All I want is to secure a good rate. From this what I know they will automatically valuate my house + amount I want to borrow = LTV% and offer can be made. Then if I accept it they will start the process (valuation etc).

It looked that way when I was applying for my mortgage, the initial value of my house (to calculate LTV% and get rates) was the price I wanted to pay for it and then when I accepted it they have done valuation just to confirm my house is worth as much as I want to borrow.

Am I wrong at any point ?
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