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Tesco mortgages

Tesco mortgages

Tesco is one of the world’s leading international retailers, and their finance arm is labelled Tesco Personal Finance. Since the company first used the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different sectors.

Combined with First Active (part of the Royal Bank of Scotland Group), Tesco now offer two types of mortgage product: Fixed Rate mortgages and Discount Rate mortgages.

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What does Tesco offer?

A Tesco fixed rate mortgage has a fixed rate for an agreed period of two years, meaning it will stay the same regardless of interest rises or falls. After the fixed period is over your mortgage will be set at a variable rate that tracks the Bank of England base rate.

Their discount rate mortgage has two options, with both set at a discount variable rate for an agreed amount of time. You can choose between 2 or 3 year discount periods. This variable discount rate is set in line with the Bank of England base rate, and rates will fluctuate accordingly. After the discount period has finished the mortgage will revert to a higher variable rate.

Early repayment charges will apply to both options if you repay your mortgage during the fixed rate period, however you can repay up to 10% of the amount of your mortgage during the two year period. There are no limits on any overpayments once the fixed rate period is over.

And with both options you can borrow up to 95% of your property’s value; however a higher lending charge will apply if you borrow over 90% of the property’s value. Interest on the Tesco fixed rate mortgage is calculated daily, but you can choose how you want to repay your mortgage: interest only, repayment or a combination of the two. You can switch your existing mortgage to or remortgage with Tesco.

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THINK CAREFULLY BEFORE SECURING ANY DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.