Tesco has joined many of the better-known lenders to offer fixed-rate and tracker mortgages.
It is one of many companies to break into the mortgage market this year in the hope of offering alternatives to the big bank mortgages.
The Tesco mortgages may be the answer for some borrowers looking to move up the property ladder.
The current financial situation has made it difficult for many people to secure a mortgage with high deposit values expected and many lenders scaling back offers.
Michael Ossei, personal finance expert at uSwitch.com, believes the move into the mortgage market is a good one but may be too little too late for Tesco.
"Tesco Bank has finally shown its hand in the mortgage market, and looks like a major competitor in the banking world,” he said.
“But with competition already high and with lower rates available, it seems that Tesco has missed an opportunity to clinch the gold medal.”
Tesco has pegged its rate at 3.19 per cent for a two-year fixed-rate which is more than West Brom at 2.95 per cent and Leeds Building Society at 3.15 per cent.
But the Tesco mortgage may be an option for those who are cash-strapped because it has a lower arrangement fee than these competitors.
The minimum deposit needed for a Tesco deal is 80 per cent which is still very high and possibly out of the grasp of first-time buyers.