Tesco Bank has cut rates by up to 0.4 percentage points across its range of two, three and five-year fixed rate products and two-year tracker products.

The new range includes a 1.69% two-year fixed 60% LTV product.

The offering also allows the flexibility to make regular or lump sum overpayments of up to 20% of the outstanding balance per annum during the initial rate period, without having to pay an Early Repayment Charge.

Customers taking out a mortgage with Tesco Bank will receive a thank-you with Clubcard points as they repay their mortgage, collecting one point for every £4 on their monthly repayments.

David McCreadie, managing director of banking at Tesco Bank, said: “We want to help our customers make the most important purchase of their life, which is why we are very pleased to offer these great value mortgage rates.

“Customers taking a mortgage with Tesco Bank receive award winning service, competitive rates and the unique thank-you of Clubcard points on their repayments.”