Following its entry into the mortgage market at the end of last year, over 700 Tesco stores around the country will now offer customers a choice of three mortgages.
Alistair Smillie, head of Tesco Mortgages said its entry into mortgages last November triggered massive interest from borrowers and the industry. “Our success shows that borrowers are hungry for simple, easy-access, low-cost mortgages in a market that can be over-complex”.
“Our research* shows that three out of four borrowers (75%) are overwhelmingly motivated by monthly repayment costs, with more than one in five (21%) saying the rate during the initial period is paramount. Just seven percent are actively looking for flexible bells and whistles, such as payment holidays, and most borrowers who have them say they don’t use them anyway. We’ve launched this range to give borrowers exactly what they want - a competitive start rate plus great value over the term of the loan.”
2 year fixed rate (till 31/7/2007)
· Starting fixed rate of 5.15% (5.8% APR)
· Reverting to standard variable rate of 5.74% after two years
· Interest calculated daily
· Loans up to 95% of property value
· Overpay option
· Apply by phone or on-line
2 year discountedvariable rate
· Starting rate of 4.75% (5.7% APR)
· Reverting to standard variable rate of 5.74% after two years
· Interest calculated daily
· Loans up to 95% of property value
· Overpay option
· Apply by phone or on-line
3 year discounted variable rate
· Starting rate of 4.75% (5.7% APR)
· Reverting to standard variable rate of 5.74% after three years
· Interest calculated daily
· Loans up to 95% of property value
· Overpay option
· Apply by phone or on-line
