A simples guide

Looking at Tesco Mortgages?

We all know that Tesco does a fine line in food and drink, but mortgages? Well yes, one of Britain’s top 4 supermarket has made major inroads into the financial products market and has a serious range of insurance and mortgage deals that are taking the fight to the high street banks.


Tesco Bank doesn’t just compete on price, although they do have some great deals. The retailer has a strong brand identity in the UK built on customer service and rewards. It has brought that same approach to its financial products, so rest easy that you’re in the right hands. 


What are the interest rates on Tesco mortgages?

The interest rates change frequently and can depend on your individual circumstances. However, you can get a better deal if you have a large deposit to include.

The best fixed-rate deals come with a 40% deposit, which shows the bank you’re a relatively safe bet and they’ll reward you with a long-term, low interest rate and an introductory bonus to keep your repayments low at first, when you need it most.

A slightly lower fixed-rate deal can be yours if you have a 25% deposit. Of course there are fees attached, but the overall cost can be easily compared to a range of competitors on our comparison service.

monopoly house

What types of mortgages do Tesco offer?

As with most of the high street banks, Tesco have a tracker mortgage that is linked to the Bank of England base rate initially, which will rise and fall with the bank’s base rate.

Alternatively you can opt for a series of fixed-rate deals. You can choose from a 2, 3 or 5-year fixed rate deal that will give you some peace of mind if the interest rates start to climb.

Of course you are free to take another fixed-rate term at the end of your current deal, which Tesco will help with. Unlike some banks the mortgages are portable (or transferable), too, so you can simply take the mortgage with you when you move house. If you’re re-mortgaging, Tesco Bank will even cover your standard legal fees for switching. Just be mindful that other additional fees might not apply.

You can also switch to a fixed-rate mortgage at any time if you opt for a tracker deal, although some fees may apply.

You even get Tesco Clubcard points on every mortgage payment. As the saying goes - “Every little helps!”

Of course every mortgage deal is subject to change, so keep an eye on our site and do a thorough comparison before committing to any mortgage deal. 

sold sign

Why choose a Tesco Mortgages?

Tesco Bank offers competitive rates, useful customer service (that it has perfected in the retail industry) and it is already an award winning lender. What Mortgage readers have voted Tesco Bank as the Best Direct Lender in 2014 and 2015 and it also won Moneynet’s Best Direct Mortgage Provider 2015. So rest assured that the company has proven itself time and time again.

It has made helping first-time buyers a part of its mission, with 95% mortgages available meaning buyers just have to find 5%. Also the Clubcard rewards accumulated on the mortgage should also help to make a sizeable dent on your monthly shopping bill. For those of you with a family to support, that does make a difference. 

Could I get a better deal elsewhere?

Your mortgage is quite simply the biggest investment you will ever make. Tesco has given consumers a real option to the traditional high street banks. However, you should not just rush into a decision like this.

Before you commit to a 25-year financial deal, you should check out all the alternatives. It is not just about finding the best price, but also finding an agreement with terms and conditions that best suit you. You can compare leading mortgage providers right here with us in just a few simple clicks.

We’re here to help you with one of the biggest decisions you’ll ever make. So, check out the latest mortgage deals right here.

All Tesco mortgage details are based on information provided on tescobank.com data on 21 April 2016

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