Fixed rate mortgage

Making your mortgage repayments easier to manage

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Our 2, 3 and 5 year fixed rate mortgages (sometimes called fixed term mortgages), give you the certainty of knowing that your repayments will stay the same for a set period of time. The rate of interest you pay is fixed for the agreed period, and so are your monthly repayments, whether interest rates go up or down.

  • You could pay off your mortgage early. During the initial rate period, you can overpay by up to 20% of the outstanding balance each year with no early repayment charge
  • Get a great deal more. Collect Tesco Clubcard points on your monthly repayments and any regular or lump sum overpayments. You won't collect points on any fees or charges paid separately from your monthly payment or on any overpayment you make to pay off your mortgage in full
  • Choose between a mortgage with a product fee or one without a product fee

Features of a fixed rate mortgage

WHAT IS A FIXED RATE MORTGAGE?

Fixed rate mortgages explained

A fixed rate mortgage means that your interest rate stays the same for a fixed period, for example, 3 years. This can make it easier to manage your budget because your monthly repayments will stay the same.

Once your fixed rate period has ended, we will move you to our standard variable rate (SVR). If you’re an existing customer, before your initial offer period ends, we’ll get in touch to let you know about the options available to you.

Our fixed rate mortgage range

Use our quick mortgage calculator to see what mortgage products we could offer you.

Not sure if a Tesco Bank Fixed Rate Mortgage is right for you? Take a look at our full range of mortgage options.

All of our mortgages are Capital and Interest repayment, rather than interest only. This means that you pay back all of the loan (sometimes called the capital), plus interest.

BENEFITS OF OUR FIXED MORTGAGE

Budget more easily with fixed repayments

Our fixed rate mortgages help you budget more easily with the certainty of knowing your monthly repayments will stay the same for an agreed period, even if interest rates go up or down.

Pay off your mortgage early for more years of mortgage-free living

During the initial period (2, 3 or 5 years) you can overpay by up to 20% of the outstanding balance each year and there’s no early repayment charge.

Take your mortgage with you when you move home

Just give us a call about moving your mortgage and we’ll walk you through what you need to know. Just a reminder, you may need to pay a property valuation fee, as well as other fees and charges.

It will all be outlined in your Mortgage Illustration: a document that tells you how much your mortgage will cost, as well as some other important information about the key features of your mortgage.

Have a break with a payment holiday

You could apply for a payment holiday for one month if you’ve made 6 monthly repayments in a row. You can take 2 payment holidays every 12 months, up to a total of 6 payment holidays over the lifetime of your mortgage. But remember, you’ll still be charged interest during a payment holiday, so your monthly payments will go up afterwards.

Need to borrow more?

If you’ve made 6 monthly payments in a row, you can apply to borrow more on top of your existing mortgage. The minimum amount you can borrow is £5,000, and we have a range of additional borrowing products with different rates depending on your loan to value (LTV).

We’re upfront and keep things simple. You’ll find full details of the changes you can make to your mortgage, and our charges, in your personalised Mortgage Illustration.

Just a reminder, you may need to pay a property valuation fee, as well as other fees and charges.

Tesco Clubcard points

You will collect 1 point for every £4 you pay on your monthly mortgage payments – including overpayments. It’s easy to keep track of your points too as they’ll show up on your Tesco Clubcard account within 6 weeks of each payment you make. You must be registered with Clubcard in order to collect points.

You won't collect points on any fees or charges paid separately from your monthly payment or on any overpayment you make to pay off your mortgage in full.

Clubcard points collection rates are subject to change.

The Tesco Clubcard Scheme is administered by Tesco Stores Limited, Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, AL7 1GA, who are responsible for fulfilling points.

Our awards

What Mortgage awards

In 2018 we were awarded What Mortgage’s Best Direct Lender for the fourth year running and Moneyfacts Best variable Lender 2018.

Your home may be repossessed, as a last resort, if you do not keep up repayments on your mortgage.

How can we help?

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First time buyers

Buying your first home is an exciting time with a lot of changes. We'll guide you through the mortgage process every step of the way, from saving your deposit to getting a mortgage offer. You could get the keys to your new home sooner than you think.

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Moving home

Whether you're taking your next step up the property ladder or downsizing, there's a lot to think about when you're moving home. Whatever the reason, let us help you so you can focus on looking for your ideal home.

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Remortgage

If you're looking to move your current mortgage from another lender, we can help. We'll guide you through our remortgaging options, and then help you switch to our best deal.

Contact us - we're here to help

Need a few questions answered? Want to chat rather than scroll? Our UK-based teams are here to talk to you six days a week. Lines are open Monday to Friday 8am-9pm and Saturday 9am-4pm.

Call 0345 217 2050* to chat about new policies.

* These numbers may be included as part of any inclusive call minutes provided by your phone operator.