Tesco Mortgages was a relatively new mortgage lender in the UK mortgage market.
Tesco mortgages have since shut down its operations and are no longer accepting any new mortgage applicants leaving many in fear of what will happen to the current group of people who have Tesco mortgages.
The mortgage market was becoming very competitive and this, in turn, led to the demise of the Tesco mortgages.
Tesco mortgages offered a range of fixed-rate and standard variable-rate products.
What types of mortgage did Tesco Mortgages provide?
Fixed-rate mortgages: There was a wide range of fixed-rate mortgages available with 2, 3 or 5 year fixed terms. These mortgages were available for both first-time buyers and home movers.
Fixed rate mortgages are good as they provided the borrowers with a degree of certainty over their fixed term.
Standard variable-rate mortgages: There was also a range of standard variable rate mortgages but those rates were not set by Tesco mortgages but rather by the bank of Ireland’s SVR rates.
Remortgages. All the products mentioned above were also available for those looking to remortgage.
Eligibility criteria for Tesco mortgages
When Tesco mortgages were offered you would have been asked to meet the following eligibility criteria:
- UK resident.
- Aged 18 or over.
- Have a UK bank account.
- Annual household income of at least £20,000.
- No history of bankruptcy or property repossession.
How do I apply for an Tesco Mortgage?
As Tesco mortgages are no longer available you will not be able to apply for an Tesco mortgage.
If you currently have an Tesco mortgage then you should contact them with the details below or through their website.
If you are considering getting a mortgage then using a mortgage broker may be a good choice as mortgage brokers usually have access to many more products than any specific mortgage lender.
Mortgage brokers will also usually have access to specific deals from mortgage lenders as well as experience on which mortgage lenders will be more likely to accept your case. This will help you avoid getting rejected on a mortgage application and having to build credit due to the damage a rejection might do to your credit score.
If you have bad credit or are self-employed then specialist mortgage brokers such as bad credit mortgage brokers or self-employed mortgage brokers may be useful.
You may also want to consider the government schemes which are available for first-time buyers and home movers such as:
- Lifetime ISA- gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
- Help to buy ISA- gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000
- Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75% after the fifth year and 1% plus RPI for every year thereafter.
- Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
- Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
- Rent to own- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
- Right to buy- allows you to buy your home at a discount price.
- Preserved right to buy- same as above.
- Right to acquire- same as above.
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