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Residential mortgages now offered by your supermarket
Residential mortgages now offered by your supermarket
Tesco Bank has announced that it will be offering mortgages through Tesco Bank.
Maidenhead,
Berkshire,
United Kingdom
(sardnews.org)
03/09/2012
Tesco Bank has announced that it will be offering mortgages through Tesco Bank.
Tesco Bank has launched their new mortgage product with a 20% deposit requirement and starting interest rates from 3.19%, even though several large lenders have started to offer interest rates of 3%.
In addition, Tesco will allow customers to make early repayments of 20% of the loan with no penalty for doing so, and can use Clubcard points to pay off part of their loan each month. So the more groceries customers buy, the more points they have to pay towards their outstanding loan.
Richard Alton is a whole or market broker at Alton Mortgages in Maidenhead. He says:
"As a whole of market mortgage broker I always like competition from the banks as it keeps everyone on their toes and often leads to price reductions which is great for consumers and our clients.
"However, having seen Tesco's recent performance and also share performance I think they should get back to their core business rather than try to be something to everyone which is turning people off the brand. I am sure their shareholders want them to return to basics and start delivering real value to the business.
"The rates they have come out with are not that competitive and it is clear they don't want to take a big slice of the market and are just going to be a marginal player at least for now.
"The 20% overpayment facility is a nice touch but in reality most people won't use this amount, most of the High Street allow a 10% overpayment facility."
Notes to Editors
Alton Mortgages is an established whole of market mortgage broker based in Maidenhead, Berkshire. Established in 2005, customer service is at the heart of what we do, and we recognize that our clients are individuals with very unique requirements. Click here to find why you should use a broker We work with individuals and families to provide them with an exceptional residential mortgage service
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