Tesco Bank has reduced rates on a selection of its two, three and five-year fixed rate mortgage products.

The new rates include:

• 2.34% for the 80% LTV fixed for three years with no product fee
• 1.99% for the 80% LTV fixed for three years with £995 product fee
• 2.49% for the 90% LTV fixed for two years with no product fee
• 2.28% for the 80% LTV fixed for five years with £995 product fee

David McCreadie, managing director at Tesco Bank, said: “At Tesco Bank, we want to make it easier for customers to buy or remortgage their home, and our new mortgage rates help to make it more affordable for customers as they take their next steps on the property ladder.”

Tesco Bank Mortgage customers collect Clubcard points as they repay their mortgage. Customers can collect one Clubcard point for every £4 on their monthly repayments.

Customers also have the flexibility to make regular or lump sum overpayments of up to 20% of the outstanding balance each year during the initial rate period, without having to pay an Early Repayment Charge.