Tesco is one of the world’s leading international retailers. It first used this trading name in the mid 1920s. Since then the group has expanded into different formats, and in different markets and sectors. The principal activity of the group is food retailing, with over 2,000 stores worldwide. However Tesco, along with First Active which is part of the Royal Bank of Scotland Group, now offer two types of mortgage product.

Fixed
Discount

Fixed: the rate of the mortgage is fixed for an agreed interval. This means it will stay the same regardless of interest ups or downs. After this your mortgage will be set at a variable rate that tracks the Bank of England base rate. Tesco’s fixed rate mortgage is set at two years.

You can re-mortgage with Tesco, or switch your existing mortgage
Early repayment charges apply if you repay the mortgage in the fixed rate interval, however, you can repay up to 10% of the amount of your mortgage during the deal period.
There are no limits on any overpayments once the fixed rate period has finished
You can borrow up to 95% of your property’s value, however, a higher lending charge will apply if you borrow over 90% of the property’s value
Interest on this mortgage is calculated daily
An arrangement and money transfer fee is applicable

You can choose how you want to repay your mortgage: interest only, capital repayment or a combination.

Discount: there are two options, both are set at a discount variable rate for an agreed period. You can choose either 2 or 3 year discount periods. This variable discount rate is set according to the Bank of England base rate, which can go up and down as well. After the discount period is over the mortgage will convert to a higher variable rate.

You can switch your existing mortgage or re-mortgage with Tesco’s
Early repayment charges apply if you repay the mortgage in the discount rate interval, however, you can repay up to 10% of the amount of your mortgage during the deal period.
There are no limits on any overpayments once the discount rate period is over
You can borrow up to 95% of your property’s value, however, a higher lending charge will apply if you borrow over 90% of the property’s value
Interest on this mortgage is calculated daily
An arrangement and money transfer fee is applicable

You can choose how you want to repay your mortgage: interest only, capital repayment or a combination.