Tesco aims to start selling mortgages

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Tesco Bank will launch its long-anticipated push into the mortgage market next week, with some market-leading deals which also offer customers Clubcard points.

The supermarket giant also plans to launch cash Isas before the next tax year starts, as well as current accounts to coincide with changes next year to make switching easier, giving customers a “complete package” of products.

Tesco will offer mortgages to people with deposits of 20 per cent or more, but declined to give a figure for the amount it plans to lend or the number of customers it hopes to attract, saying its immediate plans are “modest”.

The product range, which will be available from Monday, includes two, three and five-year fixed-rate mortgages, and a two-year base rate tracker.

Rates will start at 3.19 per cent, for a two-year fixed-rate mortgage with a minimum 30 per cent deposit, which includes an £800 product fee. There is a non-refundable booking fee of £195.

The mortgages also aim to give an added incentive for Tesco shoppers, with a Clubcard point for every £4 on monthly repayments.