Fixed rate mortgage
Making your mortgage repayments easier to manage
Our 2, 3 and 5 year fixed rate mortgages (sometimes called fixed term mortgages), give you the certainty of knowing that your repayments will stay the same for a set period of time. The rate of interest you pay is fixed for the agreed period, and so are your monthly repayments, whether interest rates go up or down.
- We could help you make the move with our 95% loan to value (LTV) mortgages, meaning you only need a 5% deposit
- You could pay off your mortgage early. During the initial rate period, you can overpay by up to 20% of the outstanding balance each year with no early repayment charge
- Get a great deal more. Collect Tesco Clubcard points on your monthly repayments and any regular or lump sum overpayments. You won’t collect points on any fees or charges paid separately from your monthly payment or on any overpayment you make to pay off your mortgage in full
- Choose between a mortgage with a product fee or one without a product fee
Features of a fixed rate mortgage
WHAT IS A FIXED RATE MORTGAGE?
Fixed rate mortgages explained
A fixed rate mortgage means that your interest rate stays the same for a fixed period, for example, 3 years. This can make it easier to manage your budget because your monthly repayments will stay the same.
Once your fixed rate period has ended, we will move you to our standard variable rate (SVR). If you’re an existing customer, before your initial offer period ends, we’ll get in touch with details about our current mortgage deals.
Our fixed rate mortgage range
Use our quick mortgage calculator to see what mortgage products we could offer you.
Not sure if a Tesco Bank Fixed Rate Mortgage is right for you? Take a look at our full range of mortgage options.
All of our mortgages are repayment, rather than interest-only. This means that you pay back all of the loan (sometimes called the capital), plus interest.
BENEFITS OF OUR FIXED MORTGAGE
Benefits of our fixed rate mortgage
Our range of fixed rate mortgages is flexible, so if your life changes your mortgage could too.
Budget more easily with fixed repayments
Our fixed rate mortgages help you budget more easily with the certainty of knowing your monthly repayments will stay the same for an agreed period, even if interest rates go up or down.
Pay off your mortgage early for more years of mortgage-free living
During the initial period (2, 3 or 5 years) you can overpay by up to 20% of the outstanding balance each year and there’s no early repayment charge.
Take your mortgage with you when you move home
Just give us a call about moving your mortgage and we’ll walk you through what you need to know. Just a reminder, you may need to pay a property valuation fee, as well as other fees and charges.
It will all be outlined in your Mortgage Illustration: a document that tells you how much your mortgage will cost, as well as some other important information about the key features of your mortgage.
Have a break with a payment holiday
If you’ve made 6 monthly payments in a row, you can apply to take a payment holiday for 1 month. You can take 2 payment holidays every 12 months, up to a total of 6 payment holidays over the lifetime of your mortgage. But remember, you’ll still be charged interest during a payment holiday, so your monthly payments may go up.
You could increase your borrowing
If you’ve made 6 monthly payments, one after the other, you can apply to borrow more. The minimum amount you can borrow is £5,000. We have a range of additional borrowing products with different rates depending on your current loan to value (LTV).
We’re upfront and keep things simple. You’ll find full details of the changes you can make to your mortgage, and our charges, in your personalised Mortgage Illustration.
Just a reminder, you may need to pay a property valuation fee, as well as other fees and charges.
Tesco Clubcard points
You will collect 1 point for every £4 you pay on your monthly mortgage payments – including overpayments. It’s easy to keep track of your points too as they’ll show up on your Tesco Clubcard account within 6 weeks of each payment you make. You must be registered with Clubcard in order to collect points.
You won’t collect points on any fees or charges paid separately from your monthly payment or on any overpayment you make to pay off your mortgage in full.
Clubcard points collection rates are subject to change.
The Tesco Clubcard Scheme is administered by Tesco Stores Limited, Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, AL7 1GA, who are responsible for fulfilling points.
FIRST TIME BUYERS AND MOVING HOME
First time buyers and moving home
We know that getting your mortgage sorted is important. That’s why we have a dedicated mortgage team. They provide an excellent service and are here to help you through the home buying process, whether you’re just starting out or are looking to move to a new home.
Our UK-based Mortgage Team is available from 8am to 9pm on weekdays, and 9am to 4pm on Saturdays. Call 0345 217 2050 or Minicom 0345 055 0607. These numbers may be included as part of any inclusive call minutes provided by your phone operator.
We provide a full advice service by phone, or you can apply online.
Secure a better remortgage rate
Everyone has their own reasons for wanting to remortgage. Your current deal could be about to end, you might be looking for a better rate or be worried that interest rates might go up. Maybe your situation has changed and you want a different type of mortgage or perhaps you want to increase your mortgage to make home improvements.
We offer competitive rates on remortgage deals, so there’s nothing stopping you from getting a quote and seeing how much you can borrow. If you’re coming to the end of your deal we can arrange for your home to be revalued and pay for your first standard valuation fee.
You could save by switching
When you remortgage with us, we’ll pay your first standard valuation fee and we’ll also cover your standard legal fees.
COMING TO THE END OF YOUR MORTGAGE?
Renew your existing mortgage
If you’re an existing customer, before your initial offer period ends, we’ll get in touch with details about our current mortgage deals. We’ll work it out based on how much you still owe on your mortgage, our current valuation of your home, and the number of years left on your existing mortgage. And because you’re already a customer, we’ve done all the checks we need to, meaning switching to a new deal should be quick and easy.
We’re proud of the awards we’ve won because they’re recognition for our online product offering – including our 2, 3 and 5 year fixed rate products – and the ability to apply online.
In 2017 we were awarded What Mortgage’s Best Direct Lender for the second year running and Moneyfacts Best Remortgage Lender 2017. We were also Moneyfacts Best First Time Buyer Mortgage Provider 2016 and Moneynet’s Best Direct Mortgage Provider for the third time in a row.