Tesco Bank has cut the interest rate on a number of its mortgages by up to 0.7 percentage points.

In addition, all Tesco Bank’s fee-based mortgages now have a single product fee of £800 (plus £195 non-refundable booking fee), with many of its fees reduced by £500.

Highlights of the new products include:

• 3.09% (-0.70%) for the five-year fixed 80% LTV with no fee
• 3.19% (-0.50%) for the three-year fixed 85% LTV with no fee
• 2.99% (-0.40%) for the five-year fixed at 80% LTV with £800 fee (plus £195 non-refundable booking fee)
• 2.79% (-0.40%) for the two-year fixed at 85% LTV with no fee

David McCreadie, managing director of banking at Tesco Bank, said: “We want to do everything we can to help more customers purchase their own home, and we are delighted that our new two-year, three-year and five-year fixed rate mortgages are among the most competitive rates available.

“When taking a mortgage with Tesco Bank, customers can be confident that they will receive great value and award-winning customer service with the added bonus of Clubcard points on their repayments.”