To explore correlated electrons in the presence of local and non-local disorder, the Blackman-Esterling-Berk method for averaging over off-diagonal disorder is implemented into dynamical mean-field theory using tensor notation. The impurity model combining disorder and correlations is solved using the recently developed fork tensor-product state solver, which allows one to calculate the single particle spectral functions on the real-frequency axis. In the absence of off-diagonal hopping, we establish exact bounds of the spectral function of the non-interacting Bethe lattice with coordination number $Z$. In the presence of interaction, the Mott insulating paramagnetic phase of the one-band Hubbard model is computed at zero temperature in alloys with site- and off-diagonal disorder. When the Hubbard $U$ parameter is increased, transitions from an alloy band-insulator through a correlated metal into a Mott insulating phase are found to take place.
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