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 Tesco offers home loan

The supermarket giant has teamed up with First Active to launch its first home loan - a competitive three-year discount deal where the starting rate is 4.75%. After the three years it reverts to the standard variable rate (currently 5.74%).

Customers can borrow up to 95% of the property's value, interest is calculated daily and you can overpay. Details of the deal are available in stores.

Home loans broker Purely Mortgages says the mortgage is "a reasonable best buy, but just the same product that First Active is offering to the whole market through mortgage brokers".

This week also saw the Post Office entering the home insurance market. It will be using a panel of 14 insurers and claims it will be able to offer customers savings of up to 40% on their existing policies.

And Mothercare has joined forces with kids' savings specialist the Children's Mutual to promote the new child trust fund initiative going live in April 2005.


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