Compare TESCO mortgages
Interesting in taking out a mortgage with Tesco Bank? Their various mortgage products are designed to fit the borrowing requirements of a wide range of customers, so it’s important to review the different features and restrictions applicable to the different types of mortgage. That way you can make an informed choice about which types of mortgage fits your needs best.
First Time Buyer mortgages
Tesco Bank are one of a number of lenders who offer mortgages of up to 95% of a property’s market value to first time buyers. This addresses one of the main issues facing those looking to purchase their first home – how to raise a large enough deposit. First time buyer mortgages help more people get on the property ladder and make homeownership more affordable.
Remortgaging with Tesco Bank
There are several reasons people tend to remortgage. First, it can allow you to cut your monthly repayments by getting a better interest rate or spreading your loan over a longer period. Second, it can allow you to reduce your borrowing if you can afford to pay off part of your mortgage and take out a smaller replacement mortgage. Thirdly, it can allow you to borrow more, meaning once your old mortgage is paid off you could have money spare for home improvements or other purposes.
Second charge mortgages
If you already have a Tesco Bank mortgage and have made at least six monthly payments you may be eligible to borrow more with a separate secured loan. This could be used to fund home improvements or other purposes, subject to approval. The minimum you can borrow in this way is £5,000 and your additional borrowing will need to stay within an agreed percentage of your property’s market value and be paid off by the time your main mortgage deal runs out.
Loan to value ratio
The maximum amount you can borrow with different mortgage products will be defined by a loan to value (LTV) ratio. This tells you what percentage of a property’s market value you can borrow with a particular type of mortgage.
So, if you are looking at a mortgage with an LTV of 75% with respect to a property worth £100,000, the maximum you would be able to borrow would be £75,000. Lenders will usually tend to offer better interest rates on mortgages with a lower LTV, although this depends on a number of different factors.
Find the best deals on mortgage rates
Not sure if the mortgage deal you have found is really offering good value? Our free mortgage calculator makes it quick and simple to compare deals from across the market, taking in all the leading lenders. That way you can be confident the deal you choose really is offering good value.
To try out the mortgage calculator just head to the top of the page. You will need to share some basic information about your borrowing needs, then the calculator will show you matching mortgage products so you can see how the different interest rates and other features stack up before making a decision.