When Tesco Bank announced details of its first ever range of mortgage products on 6th August it was met with a rather lukewarm response with many giving the thumbs down as the rates were deemed to be uncompetitive.
Today the supermarket banking giant shows it means business and has hit back with some hefty price reductions, pushing some of the new deals towards the top of the best buys.
The rate on the 5 year fix to 70%LTV has been slashed from 3.89% to just 3.39% with a £995 fee while the 2 year fix has been cut by 0.20% to 2.99% and gives Northern Rock 2.89% (£995 fee) and Woolwich from Barclays at 3.09% (£999 fee) something new to think about.
People were probably expecting to see this aggressive pricing on launch, but I’m sure Tesco wanted to be 100% confident of its systems and processes and being able to cope with the increase in applications that a move of this ilk is likely to deliver.
More competition in the mortgage market from a big high street name is good news for consumers – my verdict – HIT