Tesco Bank has introduced its lowest ever tracker rate mortgage at 0.98%.

It has also reduced the rates on a selection of its two, three and five-year fixed rate deals.

The new rates, which are available through Tesco Bank and Tesco mortgage intermediaries, include the following:

• 0.98% for the 60% LTV two-year tracker with £1,495 product fee
• 1.92% for the 60% LTV fixed for five years with no product fee
• 2.12% for the 75% LTV fixed for five years with no product fee

David McCreadie, managing director at Tesco Bank, said: “We are pleased to introduce our new reduced rates on a selection of our two, three, five-year and tracker mortgage products to help customers buy or remortgage their home.

“Alongside our competitive rates, we also offer customers the unique added benefit of collecting Clubcard points on their mortgage repayments.”