Full details will be available in over 700 Tesco stores nationwide from 3 November.
Details of the new Tesco mortgage offer:
- Three year discounted variable rate – starting rate of 4.75% (5.7% APR)
- Reverting to standard variable rate of 5.74% after three years
- Interest is calculated daily
- Customers can borrow up to 95% of property value
- Overpay option (up to 10% of borrowed amount in any year during discounted period. No limit after discounted period*)
- Apply by phone or on-line
Alistair Smillie, head of Tesco Mortgages, comments: “We want to give our customers a refreshingly simple, straightforward and great value option. By applying Tesco value and pricing, we believe home-buyers will now have a real money-saving alternative to many of the over-complicated products offered elsewhere.”
Below is an example of how the Tesco Mortgage compares to other leading offers:
Provider 3yr
Discounted Rate SVR Rate Overall cost for comparison Savings with
Tesco over 5yrs
Tesco 4.75% 5.74% 5.7% APR
Nationwide 4.89% 5.99% 5.9% APR £615.60
Woolwich 5.09% 6.79% 6.6% APR £2064.12
Abbey 5.19% 6.75% 6.6% APR £2188.56
Northern Rock 5.34% 6.59% 6.8% APR £2881.08
Based on £100k repayment mortgage over 25yrs. Lenders’ best available 3yr discounted rate. Correct at 7/10/04.
