Tesco Bank Launches Competitive New Mortgage Rates

EDINBURGH, Scotland, April 3, 2013 /PRNewswire/ --

Tesco Bank has today announced competitive new mortgage rates across its range of mortgage products. These rate reductions mean Tesco Bank is now offering customers some of the most competitive Fixed Rate products on the market.

     (Logo: http://photos.prnewswire.com/prnh/20121017/568123 )

In addition to these new rates, Tesco Bank is also now offering customers a new 1.99% two-year fixed rate mortgage at 60% LTV.

Tesco Bank product range:

                         GBP1,600 Product Fee
                             Option                         Non-refundable
    Product      Max LTV    Initial Rate           APR      booking fee

    2 Year Fixed   60%           1.99%             4.0         GBP195

                         GBP1,300             GBP0
                         Product Fee          Product Fee
                         Option               Option
                         Initial              Initial             Non-refundable
    Product      Max LTV    Rate        APR   Rate          APR   booking fee

    2 Year Fixed  70%        2.29%      4.0     2.69%      4.0%
                           (previously        (previously
                             2.39%)             2.79%)

                  75%        2.59%      4.1     2.99%      4.1%
                           (previously        (previously
                             2.89%)             3.29%)

                  80%        3.19%      4.2     3.59%      4.2%
                           (previously        (previously           GBP195
                            3.39%)              3.79%)



    3 Year Fixed   75%       2.49%      3.9     2.79%      3.9%
                           (previously        (previously
                             2.79%)             3.09%)

                   80%       3.49%      4.2     3.79%      4.2%
                           (previously        (previously           GBP195
                              3.79%)             4.09%)



    5 Year Fixed   70%       2.79%      3.8     3.19%      3.9

                   75%       3.19%      4.0     3.59%      4.1
                           (previously        (previously
                             3.69%)             4.09%)

                              3.69%     4.2     4.09%      4.3
                           (previously       (previously
                   80%       3.79%)             4.19%)              GBP195



    2 year tracker 70%     BoE +2.45%   4.2%  BoE +2.95%   4.2
                   75%     BoE +2.69%   4.2%  BoE +3.19%   4.2
                   80%     BoE +3.29%   4.3%  BoE +3.79%   4.3      GBP195

Tesco Bank's 2yr, 3yr, 5yr Fixed Rate Mortgage, and two year base rate tracker provide customers with a choice of straightforward fees. In addition to good value and great service, customers taking out a mortgage with Tesco Bank will also receive a 'thank-you' with Clubcard points as they repay their mortgage, collecting one point for every £4 on their monthly mortgage repayments*.

Announcing the new rates, David McCreadie, Managing Director of Banking, commented:

"I am delighted that these rate reductions make Tesco Bank mortgages some of the most competitive on the market. We want customers to be able to choose from a range of mortgages that combine great rates, good service with the 'thank you' of Clubcard points, and believe our new products allow customers to do just that".

Tesco Bank mortgage products are straightforward:

• All provide customers with 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.
• Customers opting for a tracker mortgage can take advantage of a 'switch and fix' facility that allows them to move to a fixed rate if they require greater financial certainty. **
• 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.

All products will move onto the Tesco Bank Standard Variable Rate (currently 4.24%) at the end of the initial fixed or tracker rate period. Early Repayment Charges apply during the initial rate period.

For more information on mortgages, please visit http://www.tescobank.com

Notes to Editors:

*Points are not collected on any fees or charges paid separately from monthly payments.

Points are also collected on overpayments, but not on any overpayment made to pay off the mortgage in full. Clubcard points will be received within 6 weeks of payment. The Clubcard scheme is administered by Tesco Stores. Tesco Stores is responsible for fulfilling the points.

** Fees may apply

*** A payment holiday allows the customer to miss a single monthly payment. A maximum of 6 can be taken over the life of the mortgage. Conditions apply.

1. About Tesco Bank Mortgages

• Tesco Bank mortgages are available online or by phone, 0845 055 0607, between 8am-9pm Monday to Friday, 9am - 4pm Saturday, from our UK based customer service team.
• Tesco Bank mortgage products may be withdrawn or changed at any time.
• All Tesco Bank mortgages are subject to a non-refundable booking fee and a product fee may apply depending on the product selected. Except for standard remortgages, a valuation fee applies.

2. About Tesco Bank:

Tesco Bank is the UK's largest supermarket bank.

• Our customers hold 6.5 million accounts and policies with us.
• We opened for business in 1997 and since 2008 have been owned by Tesco PLC.  
• We now have over 3000 staff based in Edinburgh, Glasgow and Newcastle.

Our aim is to be the financial services provider of choice for Tesco customers by giving them good service, great value and by rewarding their loyalty for shopping at Tesco.

We aim to be a valued part of the communities we operate in.

For media enquiries, please contact:

Polly Tolley, Tesco Bank
Tel:+44-0131-479-1345
Polly.Tolley@Tescobank.com

Clare Anderson / Risha Parmar Fishburn Hedges
Tel:+44-0207-544-3095 / +44-020-7839-4321
tescobank@fishburn-hedges.co.uk