A simples guide

Guide to Tesco mortgages

We all know that Tesco does a fine line in food and drink, but did you ever think you could stock up on a mortgage alongside your bread and milk? Like many other major supermarkets and high street stores, Tesco also offers a range of financial services such as current and savings accounts, credit cards, and mortgages. So, if you’re looking for a mortgage, how does Tesco stack up?

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What types of mortgages do Tesco offer?

Tesco offer a fixed rate mortgage over two, three or five years as well as a tracker mortgage that follows the Bank of England base rate. Fixed rate mortgages offer peace of mind and can help monthly budgeting because you know that your repayments will be the same each month for the period you’ve opted for. A tracker mortgage means that your monthly payments may vary depending on whether overall interest rates go up or down.

You can also take a Tesco mortgage with you when you move home which can make life a lot simpler – although you may have to pay a property valuation fee as well as other admin costs. If you’re re-mortgaging, Tesco may even cover your standard legal fees for switching – although you may have to cough up for any additional fees.

Tesco may also give you the option of a payment break so long as you’ve made six monthly repayments in a row. The break is for one month and you can take up to two breaks every 12 months.

And of course, with Tesco, you’ll get Clubcard points on every monthly payment so if you already shop with Tesco then this could be a great way to boost points and get even more rewards.

What are the interest rates on Tesco mortgages?

Interest rates depend on your individual circumstances – so if you’ve got a decent deposit, you’ll attract a lower interest rate and vice versa. It’s best to have a look at our tables to find the best deals that Tesco are currently offering.

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Why choose a Tesco mortgage?

Tesco mortgages offer competitive rates and some handy features such as the payment breaks and Clubcard reward points; you can also expect some solid customer service as well as the opportunity to make overpayments in certain circumstances.

Plus, you can be safe in the knowledge that the folks over at Tesco Bank really know what they’re doing, as they’ve been declared the winner of ‘Moneyfacts Best First Time Buyer Mortgage Provider’ in 2016 and have won ‘Moneyfacts Best Direct Mortgage Provider’ three times in a row. If that’s not enough accolade, they’ve also been voted ‘Best Direct Lender’ by ‘What Mortgage’ readers.

There’s also a Tesco mortgage to suit most budgets – whether you’ve got a sizeable deposit or are a first-time buyer with limited means – as they also offer 95% mortgages to help you get on the property ladder.

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But could I get a better deal elsewhere?

Your mortgage is probably one of the biggest investments you’ll ever make so it’s important to choose wisely. If you’re a dedicated Tesco shopper, then their banking arm provides some genuine options versus the traditional high street banks.

But, like with all money matters, you shouldn’t just rush into a decision, and let’s be honest, shopping around for a mortgage hardly has the same level of excitement as shopping for new shoes or bags. But that’s where we come in – because you can shop for one right now, in your front room with a cuppa – so what are you waiting for – let’s start comparing.

All Tesco mortgage details based on information provided on Tescobank.com as of November 2016.

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