Tesco will launch their first ever mortgages today, with 2, 3
and 5 year fixed rate home loans.
Disappointingly for first time buyers, Tesco will insist on a 20
per cent deposit on all their mortgage products, as they will only
loan up to 80 per cent of a property's value. Tesco will also be
offering tracker mortgages.
For those who do have equity in their homes, or are buy-to-let
investors, the fixed rates at 3.19 per cent will be attractive,
although there is an £800 booking fee. If you pay a higher rate of
interest then the fee is £195.
The rates aren't especially competitive, but those who shop at
Tesco regularly can benefit from a Clubcard point for every £4 they
repay from their mortgage.
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discounts and benefits - Our handy guide
property market slows, regional house prices at rock
is features editor of Watchmywallet.co.uk