MSE news story: Are Tesco's market leading mortgages best value?

Former_MSE_Michael_C

"Tesco Bank has launched a set of mortgages, some with the joint lowest rates, but they...." Read the full story:

Are Tesco's market leading mortgages best value?



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Thrugelmir

Isn't this the case with all mortgage products? As lenders have a target market.

Another non story MSE.

Gambler

If you believe the Sunday Times they are. A rate of 2.29% for the 5 year fix is quoted in their money section today.

I thought my patience had paid off until I checked the Tesco website !!

amnblog

Getting a mortgage is not like buying baked beans.

You can't just take the tin off of the shelf and pay at the counter.

Your lender decides who to sell to.

monty-doggy

Wow their product fees are high!

Thrugelmir

monty-doggy wrote: »

Wow their product fees are high!

Unless you borrow a large sum of money.

Tesco's may sell groceries in volume not so with mortgages yet.

amnblog

They have used their 60% rate as a headline to attract business.

The 70%, 75% and 80% rates are not among the lowest available and the 80% rate is actually 0.45% off the pace.

huzzer84

What this article seriously fails to do is to consider some really significant factors in choosing a mortgage.

It claims that the First Direct 5 year deal is cheaper, but fails to note that the Tesco deal has free legal fees, whereas the FD one doesn't!

Also, looking at the balances after 5 years using the MSE 'compare 2 mortgages' calculator, the balance on the Tesco product ends up over £500 lower, meaning that the thing that matters - the interest, rather than the amount paid over the 5 years, points out that actually the Tesco one is on the face of it a much better proposition.

And that's before you add the benefit of the Clubcard points...