Clydesdale Bank Shakes Up Mortgage Market with New Products and Rate Reductions

Clydesdale Bank withdraws 75% LTV exclusives and launches new residential purchase and buy-to-let products. What does this mean for borrowers?

Clydesdale Bank Withdraws 75% LTV Exclusives and Launches New Products

As a mortgage expert, I’ve been keeping a close eye on the latest developments in the industry. Recently, Clydesdale Bank announced that it will be withdrawing its 75% loan-to-value (LTV) exclusives. This move has left many of us wondering what this means for the market and how it will impact borrowers.

What’s Changing?

The lender will be withdrawing its 75% LTV two-year fixed rate at 5.02% and the 75% LTV five-year fixed rate at 4.74%. These products were popular among borrowers who were looking for competitive rates and flexible terms. However, it’s worth noting that the lender will be launching new residential purchase and buy-to-let (BTL) products to replace these exclusives.

New Products on the Horizon

Clydesdale Bank will be launching new products within its exclusive customer BTL range. These include a two-year fixed rate at 5.60% and a five-year fix at 5.20%. Both of these products are for loans between £500k and £1m with a fee of £1,999. Additionally, the lender will be introducing new residential purchase exclusives, including an 80% LTV two- and five-year fix with rates of 5.06% and 4.78% respectively. Both of these products come with a fee of £1,499.

Rate Reductions Across Existing Products

Clydesdale Bank will also be reducing rates across its existing customer residential and BTL products. The 65% and 75% LTV commercial and industrial fee and fee offer rates will be reduced by 0.10%. Selected 60% and 75% LTV BTL fee offer rates will be reduced by up to 0.30% while selected BTL rates with a £1,999 fee will be lowered by up to 0.16%.

What Does This Mean for Borrowers?

These changes may seem like a lot to take in, but what do they mean for borrowers? In my opinion, the withdrawal of the 75% LTV exclusives may make it more challenging for borrowers to secure competitive rates. However, the introduction of new products and rate reductions across existing products may provide borrowers with more options and flexibility.

Conclusion

The mortgage market is constantly evolving, and lenders are always looking for ways to stay competitive. While the withdrawal of the 75% LTV exclusives may be a setback for some borrowers, the introduction of new products and rate reductions may provide a silver lining. As always, it’s essential for borrowers to stay informed and shop around to find the best deals.

Image: Clydesdale Bank