Tesco mortgages take on the high street. Photograph: Darren Staples/Reuters
Tesco is muscling in on the mortgage market with the long-awaited launch next week of a range of deals – just as a home loans price war has broken out on the high street.
From 6 August, the supermarket will be offering a selection of fixed-rate and base-rate tracker mortgages available to homebuyers and those remortgaging. But, as one broker put it, the rates "aren't bad, but they aren't market leading either".
Tesco has arguably made life difficult for itself by unveiling its mortgages just days after some of its rivals launched the lowest fixed-rates ever seen in the UK. Earlier this week NatWest came out with a five-year fixed-rate at 2.95% – putting itself just ahead of HSBC and Santander, which have five-year loans at 2.99%. By contrast, the cheapest Tesco five-year fix is 3.89%. However, to be fair to Tesco, its fees are a lot lower, and those headline-grabbing below-3% deals are only open to people borrowing a maximum of 60% of the property's valueTesco Bank launches bid for high street mortgage market | Money | The Guardian
From 6 August, the supermarket will be offering a selection of fixed-rate and base-rate tracker mortgages available to homebuyers and those remortgaging. But, as one broker put it, the rates "aren't bad, but they aren't market leading either".
Tesco has arguably made life difficult for itself by unveiling its mortgages just days after some of its rivals launched the lowest fixed-rates ever seen in the UK. Earlier this week NatWest came out with a five-year fixed-rate at 2.95% – putting itself just ahead of HSBC and Santander, which have five-year loans at 2.99%. By contrast, the cheapest Tesco five-year fix is 3.89%. However, to be fair to Tesco, its fees are a lot lower, and those headline-grabbing below-3% deals are only open to people borrowing a maximum of 60% of the property's valueTesco Bank launches bid for high street mortgage market | Money | The Guardian
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