Tesco enter the mortgage market
Friday 17 August 2007
Tesco have entered the mortgage market by offering their Clubcard holders a number of mortgage products.
In conjunction with Saffron Building Society, Tesco's are offering a two-year tracker mortgage set at 0.26% below the Bank of England's base rate. After the first two years, the mortgage then tracks at 0.95% above the base rate, thus giving an APR of 6.7%. This compares with 6.5% APR for Abbey's 'Flexible Plus' Tracker and 6.9% for Barclay's two-year tracker.
The Tesco mortgage, which is available for a limited time only, also includes a refundable evaluation and free legal work, and has an initial arrangement fee of £599.