Tesco launches 0.98% purchase-only two-year tracker mortgage
Tesco Bank has reignited the price war by launching a purchase-only 0.98% mortgage tracking the Bank of England base rate plus a margin of 0.73%.
At the end of the tracker period, which expires on 30 September 2019, the mortgage reverts to the bank's 3.89% standard variable rate. The overall cost for comparison is 3.47% APRC.
Aaron Strutt, product director at Trinity Financial, says: "If you are looking to purchase a property Tesco's mortgage offers real value for money. Our brokers have access to super-low tracker rates if you have a larger deposit and you want to remortgage, although they are slightly more expensive than Tesco's rate."
The 0.98% mortgage has a £1,495 arrangement fee and 2% early repayment charges apply for the first two years. Applicants will need a 40% deposit to qualify, and borrowers have to take full capital repayment mortgages.
The maximum loan size is £1 million, and overpayments are capped at 20% - rather than the more standard 10%.
Representative example: A mortgage of £250,000 payable over 25 years, initially on a tracker rate for 24 months at 0.98% and then on a variable rate of 3.89% for the remaining 23 years, would require 26 monthly repayments of £939.92 followed by 276 monthly repayments of £1,271.67. The total amount repayable would be £374,900.50 made up of the loan amount, plus interest (£122,875.50) and fees of £1,499. The overall cost for comparison is 3.47% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illusration.
Call Trinity Financial on 020 7016 0790 to secure a low mortgage rate.
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