Tesco Bank, five-year fixed rate mortgage 2.01%, no arrangement fee, 60% LTV, plus Clubcard points
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Tesco Bank, five-year fixed rate mortgage 2.01%, no arrangement fee, 60% LTV, plus Clubcard points

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Editor
Found 27th Feb
Tesco Bank has launched a new range of mortgage products with some either being for house purchase or remortgagers. The best ones are five-year fixes with no arrangement fee.

For house purchase:
  • Up to 60% LTV, five-year fix at 2.01%, no fee.
  • Up to 80% LTV, five-year fix at 2.11%, no fee
  • Up to 95% LTV, five-year fix at 4%, no fee

For remortgage:
  • Up to 60% LTV, five-year fix at 2.02%, no fee.
  • Up to 75% LTV, five-year fix at 2.06%, no fee
  • Up to 80% LTV, five-year fix at 2.11%, no fee

Clubcard Points
Tesco Bank Mortgage customers can collect one Clubcard point for every £4 on their monthly repayments.

Points are also collected on overpayments, but not on any overpayment made to pay off the mortgage in full.

How to compare mortgage deals
As always, it’s important to calculate the total cost of a mortgage deal. You can do this by adding together the total monthly payments over the fixed period (5 x 12 = 60 payments in this case) then adding any product fee minus any cashback.

Obviously, these Tesco deals are fee-free so the calculations and comparison are pretty straightforward.

In general, zero-fee deals are better for people with smaller mortgages – those with larger home loans will benefit more from lower rates than reduced fees.
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intime20 m ago

I live in London, and to even think about a 60% LTV is cray cray and not …I live in London, and to even think about a 60% LTV is cray cray and not possible for your average one bedder, never mind anything bigger. The best I could mange is a 90% LTV, but the repayment would be almost double and unafforable.


Yeah that's now. Get somewhere (interest only if you have to and can find one- is likely to be cheaper than renting still), then in 5 yrs when the value of the place has doubled again, voilà- 50% LTV. Think that's how it has worked with most people I know.

Hot deal, got 12 months on my current reason though. Would have jumped at this.
Edited by: "Jules_HT" 28th Feb
Jules_HT6 h, 11 m ago

Yeah that's now. Get somewhere (interest only if you have to and can find …Yeah that's now. Get somewhere (interest only if you have to and can find one- is likely to be cheaper than renting still), then in 5 yrs when the value of the place has doubled again, voilà- 50% LTV. Think that's how it has worked with most people I know.Hot deal, got 12 months on my current reason though. Would have jumped at this.


Houses are not going to double in next 5 years, interest rate rises will flatten market. Those days are coming to an end....
What's a mortgage?
61 Comments
I live in London, and to even think about a 60% LTV is cray cray and not possible for your average one bedder, never mind anything bigger. The best I could mange is a 90% LTV, but the repayment would be almost double and unafforable.
intime20 m ago

I live in London, and to even think about a 60% LTV is cray cray and not …I live in London, and to even think about a 60% LTV is cray cray and not possible for your average one bedder, never mind anything bigger. The best I could mange is a 90% LTV, but the repayment would be almost double and unafforable.


Yeah that's now. Get somewhere (interest only if you have to and can find one- is likely to be cheaper than renting still), then in 5 yrs when the value of the place has doubled again, voilà- 50% LTV. Think that's how it has worked with most people I know.

Hot deal, got 12 months on my current reason though. Would have jumped at this.
Edited by: "Jules_HT" 28th Feb
Do we know how long is their mortgage offer valid for ? Three or six months ?
Wow..if this deal is hot then Iam very very pleased with the mortgage deal I signed last week....5 years fix at 1.79% with Santander (£995 fees)
I hope these are still around next year when I'm free to move off my mortgage free from penalties.
Jules_HT5 h, 31 m ago

Yeah that's now. Get somewhere (interest only if you have to and can find …Yeah that's now. Get somewhere (interest only if you have to and can find one- is likely to be cheaper than renting still), then in 5 yrs when the value of the place has doubled again, voilà- 50% LTV. Think that's how it has worked with most people I know.Hot deal, got 12 months on my current reason though. Would have jumped at this.


Be careful! House prices not rising so fast at the moment so you may not end up at a high LTV so quickly just by increase in price!
sam19702 h, 12 m ago

Wow..if this deal is hot then Iam very very pleased with the mortgage deal …Wow..if this deal is hot then Iam very very pleased with the mortgage deal I signed last week....5 years fix at 1.79% with Santander (£995 fees)


Well, if we're boasting.... 1.29% 5 years
HSBC 5 years @ 1.97 and nothing zilch fees to pay or 1.79 with £995 fees. Me 1.97 😁😁
ms844 h, 24 m ago

Do we know how long is their mortgage offer valid for ? Three or six …Do we know how long is their mortgage offer valid for ? Three or six months ?

​I applied last July for a remortgage in November, once my application was accepted I had 6 months to complete the remortgage.

One word of warning, the solicitor Tesco chose to deal with my remortgage were very slow and were always too busy to take phone calls. The remortgage did complete on the date I selected but it was very last minute and rushed.
Jules_HT6 h, 11 m ago

Yeah that's now. Get somewhere (interest only if you have to and can find …Yeah that's now. Get somewhere (interest only if you have to and can find one- is likely to be cheaper than renting still), then in 5 yrs when the value of the place has doubled again, voilà- 50% LTV. Think that's how it has worked with most people I know.Hot deal, got 12 months on my current reason though. Would have jumped at this.


Houses are not going to double in next 5 years, interest rate rises will flatten market. Those days are coming to an end....
Malachi_X41 m ago

Well, if we're boasting.... 1.29% 5 years


Where from, where from?! Lol
I signed up to 5 year fixed with nationwide with no fees at 1.99% and also got £500 cashback
zoso131320 m ago

Houses are not going to double in next 5 years, interest rate rises will …Houses are not going to double in next 5 years, interest rate rises will flatten market. Those days are coming to an end....


Indeed, and we haven't got a clue what brexit will bring us either - so assuming the next five years will be like the last five could be a very big mistake.
zoso131339 m ago

Houses are not going to double in next 5 years, interest rate rises will …Houses are not going to double in next 5 years, interest rate rises will flatten market. Those days are coming to an end....


no its not.
When interest rates was sky high, banks would offer a discount on the base rate. Even when interest rates was 8% you could still get mortgages discounted to less then 3%
Delio791 h, 38 m ago

Be careful! House prices not rising so fast at the moment so you may not …Be careful! House prices not rising so fast at the moment so you may not end up at a high LTV so quickly just by increase in price!


House prices are going down. They've been that way for the last three months or so in most parts of the country meaning that year on year the rise is now 2.2%.

It's funny how that 2.2% often gets quoted rather than the monthly falls.
sam19703 h, 43 m ago

Wow..if this deal is hot then Iam very very pleased with the mortgage deal …Wow..if this deal is hot then Iam very very pleased with the mortgage deal I signed last week....5 years fix at 1.79% with Santander (£995 fees)


If your LTV was any less than 90% then you shouldn’t be paying fees if you want a good deal.
I got 2.01% from Virgin with no fees,the difference in % cash wise on my mortgage between 1.79% & 2.01% would be around £5p/m if I’d of paid £995 in fees that would of added £16.80 (£995 divide by 60) a month onto my mortgage.
Edited by: "Pvfc1234567890" 28th Feb
2.34% fix for 10 years , no fees , tsb
Don't think these are new. We had our 80% 2.11% approved last month, just waiting for completion date now. They also included a free valuation (some charge upwards of £300 for this) and we upgraded to a homebuyers report for £107.
For review purposes, the application with Tesco was pretty much pain free. The property we're living in now isn't being sold when we move, most other mortgage companies either refused to touch this situation or required higher rates (to protect their position). Tesco looked at the current mortgage payments and agreed instantly it was self funding once rented.
Very quick process from application to approval. Only needed 1 month payslip and 3 month bank statements.

Oh... And for bragging purposes only, my existing mortgage is a Lifetime tracker at 0.37 above base rate 😁
Edited by: "japes" 28th Feb
What's a mortgage?
there is early repayment charges on this and they won't tell you how much without contacting them, good deal if you're staying put.

Early repayment charge (ending your mortgage)This charge is payable if you repay your mortgage in full before the mortgage term ends.

The early repayment charge for redeeming your mortgage varies dependent on when you redeem and the outstanding balance at that time.
eligh312141 m ago

there is early repayment charges on this and they won't tell you how much …there is early repayment charges on this and they won't tell you how much without contacting them, good deal if you're staying put.Early repayment charge (ending your mortgage)This charge is payable if you repay your mortgage in full before the mortgage term ends.The early repayment charge for redeeming your mortgage varies dependent on when you redeem and the outstanding balance at that time.


Well, I didn't contact them and found this easily enough:

Features of our 5 Year Fixed Rate mortgage with product feeTesco Bank will not charge you for a standard mortgage valuation to be carried out on your property

Fixed Rate, so you'll know exactly how much you'll pay each month.

  • Fees payable may include a product fee, which can be paid upfront or added to the mortgage.
    If you add this fee to your loan it will attract interest for the term of your mortgage, so you may end up paying more for it over the longer term.
  • Overpay by up to 20% of your outstanding balance each year during the initial rate period without incurring an Early Repayment Charge.

    An Early Repayment Charge applies until 31/05/2023 if you:
  • Switch deal or repay your mortgage in full (payable on the outstanding balance).
  • Overpay by more than the agreed limit (payable on the amount paid over the agreed limit).
  • Early Repayment Charges:
    5% until 31/05/2019
    4% until 31/05/2020
    3% until 31/05/2022
    2% until 31/05/2023

    Full details can be found in your Mortgage Illustration.
  • Collect Clubcard Points.
Edited by: "bellboys" 28th Feb
intime9 h, 5 m ago

I live in London, and to even think about a 60% LTV is cray cray and not …I live in London, and to even think about a 60% LTV is cray cray and not possible for your average one bedder, never mind anything bigger. The best I could mange is a 90% LTV, but the repayment would be almost double and unafforable.


Move to the suburbs then, everyone has a choice.
sam19705 h, 19 m ago

Wow..if this deal is hot then Iam very very pleased with the mortgage deal …Wow..if this deal is hot then Iam very very pleased with the mortgage deal I signed last week....5 years fix at 1.79% with Santander (£995 fees)


Santander have that offer still, but with no fees!!! Ouch!!!!
Word of warning - early repayment fees can really restrict you - I would never lock into more than 3 years again , as something like new neighbours or development to nearby properties could change your wanting to stay in same property, check you can take the mortgage with you if you should want it need to move or potentially you could have a high (as in ‘000s) fee to settle.
bojangles2 h, 8 m ago

no its not.When interest rates was sky high, banks would offer a discount …no its not.When interest rates was sky high, banks would offer a discount on the base rate. Even when interest rates was 8% you could still get mortgages discounted to less then 3%


But that was against a background of static or falling interest rates. If interest rates look to be increasing for foreseeable future, then you might expect the banks to take this into account and respond differently to what they did 25 years ago.
We did ours with Virgin Mary for 1.78% 5years with £499 fees.

Thanks for Mr brandson
chelmsfordman12 m ago

Word of warning - early repayment fees can really restrict you - I would …Word of warning - early repayment fees can really restrict you - I would never lock into more than 3 years again , as something like new neighbours or development to nearby properties could change your wanting to stay in same property, check you can take the mortgage with you if you should want it need to move or potentially you could have a high (as in ‘000s) fee to settle.


Aren't early repayment fees and the portability of the mortgage separate things? But you are dead right, there is always a risk in whatever you do when you take a view about what might happen in the future.
MMc19661 h, 11 m ago

Santander have that offer still, but with no fees!!! Ouch!!!!


Prove it, as all I can see is 1.89% with £999 fee

Two months ago when I was 4months from my initial rate coming to an end they told me to call back a month later. Surprise, surprise it went from 1.79% no fee to 1.79% with £999 fee and now 1.89% with £999 fee. No wonder they told me it had changed from 4months to 3months despite the website saying 4months.
Edited by: "glenharrison8" 28th Feb
M_z1 h, 14 m ago

Aren't early repayment fees and the portability of the mortgage separate …Aren't early repayment fees and the portability of the mortgage separate things? But you are dead right, there is always a risk in whatever you do when you take a view about what might happen in the future.


Think it depends how the lending company handle a move or sale, if you are borrowing less than currently you may be required to settle mortgage and take out a new policy, additionally buying a property may require a bolt on package or settling mortgage and new policy. I can only give my experience and it was a real pain in the rear, dealing with my lender.
glenharrison825 m ago

Prove it, as all I can see is 1.89% with £999 feeTwo months ago when I was …Prove it, as all I can see is 1.89% with £999 feeTwo months ago when I was 4months from my initial rate coming to an end they told me to call back a month later. Surprise, surprise it went from 1.79% no fee to 1.79% with £999 fee and now 1.89% with £999 fee. No wonder they told me it had changed from 4months to 3months despite the website saying 4months.


Appears to ended in the last week or so. I got the quoted 1.89% 5yr no fee a fortnight ago
Edited by: "chezvegas85" 28th Feb
chezvegas8510 m ago

Appears to ended in the last week or so. I got the quoted 1.89% 5yr no fee …Appears to ended in the last week or so. I got the quoted 1.89% 5yr no fee a fortnight ago


Were having trouble with them. Phoned them up and was told the rate was 2.29% for us!! even though we are "only" asking for £100k and the LTV is 58%
Tesco bank, cold from me, poor account security, misleading customer service, long mortgage process time, I think Tesco should focus on retails, don't grow too big into banking and mortgages.
supermann3 h, 52 m ago

House prices are going down. They've been that way for the last three …House prices are going down. They've been that way for the last three months or so in most parts of the country meaning that year on year the rise is now 2.2%.It's funny how that 2.2% often gets quoted rather than the monthly falls.



And it is a lot worse in London, places like Kensington/Westminster are down 9-15% over the year. Southwark down 18%. Camden down 10%

Click London then have a look around, acadata.co.uk/aca…php some areas in London are still growing but it is all very modest. Astonishing how bad it is really given interest rates are so so low, as soon as they go up then house prices will go down - simply a well known financial correlation.

The average national figures hides the majority of falls that are happening in London, as places like Manchester/Bristol e.t.c are strong.
Edited by: "V6ALFISTI" 28th Feb
zoso13135 h, 10 m ago

Houses are not going to double in next 5 years, interest rate rises will …Houses are not going to double in next 5 years, interest rate rises will flatten market. Those days are coming to an end....



Sooner or later though that chap's 10% will become more as the value of the property rises (which sooner or later it will do), and at that point they will get the better mortgage deals. Very few people save up 50% and then buy, straight in with a 50% LTV.

Whether they double in the next 5 yrs or go up 20% in the next 10, the point is the same.

Unless anyone's crystal ball works so well they would actually advise that it's not wise to buy (and if they are I would expect them to be selling up, since the principle holds both ways)?

Even if you end up in negative equity for a few years, it's not a problem if you don't have to sell. Sooner or later prices will rise (as the lack of housing is not a problem that is going away any time soon regardless of interest rates or market readjustments).

Then aside from the increase in the value of the property you've got the rent savings both now and later (my place is £600 mortgage, next door was renting for £800 when I bought, and now it costs £1200 to rent the same place).

Points I'm making are that (a) you'd be bonkers not to buy, even at 10% (or 5%, going on what Tesco appear to be offering) if you can, and (b) don't worry if you're on a sub-optimal deal, sooner or later your equity will increase as a function of the value of the property rising, and it'll come to you.

But yes, that is all a bit OT!
Edited by: "Jules_HT" 28th Feb
intime12 h, 4 m ago

I live in London, and to even think about a 60% LTV is cray cray and not …I live in London, and to even think about a 60% LTV is cray cray and not possible for your average one bedder, never mind anything bigger. The best I could mange is a 90% LTV, but the repayment would be almost double and unafforable.


Plus London is s**t. Everyone is grumpy. You should move. lol
Pvfc12345678904 h, 50 m ago

If your LTV was any less than 90% then you shouldn’t be paying fees if you …If your LTV was any less than 90% then you shouldn’t be paying fees if you want a good deal.I got 2.01% from Virgin with no fees,the difference in % cash wise on my mortgage between 1.79% & 2.01% would be around £5p/m if I’d of paid £995 in fees that would of added £16.80 (£995 divide by 60) a month onto my mortgage.


It depends completely on the amount you owe (in £) not the %. So a deal with fees may well be best for some
We've just completed our remortgage with them, went for the 5yr fixed @ 2.11%.

Good deal HOWEVER beware of the legal firm they use, absolute pants.
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V6ALFISTI2 h, 7 m ago

And it is a lot worse in London, places like Kensington/Westminster are …And it is a lot worse in London, places like Kensington/Westminster are down 9-15% over the year. Southwark down 18%. Camden down 10%Click London then have a look around, http://www.acadata.co.uk/acadataHousePrices.php some areas in London are still growing but it is all very modest. Astonishing how bad it is really given interest rates are so so low, as soon as they go up then house prices will go down - simply a well known financial correlation.The average national figures hides the majority of falls that are happening in London, as places like Manchester/Bristol e.t.c are strong.


About time. House prices are highly inflated and so sensitive to any improvement in the area. For example plans to make the Seven bridge free by the end of this year have sky rocketed prices on the border of Wales within a few months literally seem to have gone up 25% and still selling. Complete bull the whole system but everyone needs a roof. We are being fleeced in all directions. How can anyone say that is worth this and this is worth that? Bull.
Dealmessiah5 h, 28 m ago

What's a mortgage?


worth remortgaging and making money work harder by investing that money. Mortgage at these rates not bad option.
sach163612 m ago

worth remortgaging and making money work harder by investing that money. …worth remortgaging and making money work harder by investing that money. Mortgage at these rates not bad option.



Argh, borrowing to invest - the #1 rule of what not to do in the investment world (and that's before you then secure it on your house)!
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