Tesco will now offer a 1.99% 2-year fixed rate mortgage for up to 60% loan to value.
Highlights of the cuts include a 2.29% 2-year fixed rate for up to 70% LTV, a 2.49% 3-year fixed rate for up to 75% LTV and a 3.69% 5-year fixed rate. All three have a £1,300 product fee.
David McCreadie, managing director of banking at Tesco, said: “"I am delighted that these rate reductions make Tesco Bank Mortgages some of the most competitive on the market.”
Tesco also said that customers taking out a mortgage would also receive a ‘thank-you' with Clubcard points as they repay their mortgage collecting one point for every £4 on their monthly mortgage repayments.
McCreadie added: “We want customers to be able to choose from a range of mortgages that combine great rates, good service with the ‘thank you' of Clubcard points, and believe our new products allow customers to do just that."