Will Tesco offer home-owners the best mortgage deals?

Tesco has launched mortgage deals but its offers are unlikely to be the best in the market as they are not available above 80% loan to value.

A spokesperson for the new mortgage lender has commented on this decision advising that according to its mortgage research there is little demand among its customer base for higher LTV mortgage deals.

Tesco have launched new fixed rate mortgages. Various deals have been released for between 2 and 5 year fixed terms, 2 year trackers are also on offer. All products are available up to a maximum LTV of 80%, and Tesco Bank advises at present there is no plan to release any additional mortgages.

Tesco defends its decision to only loan up to a maximum 80% LTV, saying that in 2012 only 2% of mortgage advances were for 95% LTV, therefore Tesco see no reason to launch higher LTV products.

In the UK there are many first time property buyers who would disagree with this decision. The reason may low deposit buyers are not purchasing property is because there are few products on offer at lower deposit levels. Should more products be available then it is likely more potential buyers would apply for a mortgage.

The Tesco product launch has been described by some as unadventurous. Critics say the Tesco products launched are uncompetitive compared to other lenders offers and they are not the best mortgage deals available.

In response Tesco say there has been much comment on their product launch, adding that rather than being uncompetitive its rates do not need a 40% deposit which cannot be said for many competitors offers.

If you are looking for the best mortgage deals you are advised to contact Deal Direct. We are a 'whole of market' broker and have access to the best rates available in the UK.

Call one of our advisers today.