Clydesdale Bank has introduced a series of new residential mortgage products and policy improvements, expanding its offering and making affordability assessments more flexible for brokers and their clients.
The bank has launched new 85% loan-to-value (LTV) residential products, including two- and five-year fixed rates starting from 4.48% for new business, which are available on a part-and-part basis.
In the large loan range, for loans over £1 million, 85% LTV two- and five-year fixed rates are now also available for both new business and product transfers.
For existing customers, new product transfer-only 85% LTV two- and five-year fixed fee products have been introduced, starting from 4.33%.
INTEREST-ONLY POLICY
At the same time, Clydesdale Bank has made significant improvements to its interest-only policy, which is now live. The maximum LTV for part capital and interest, part interest-only loans has increased to 85% for loans up to £1.5 million. Up to 75% LTV can be taken on an interest-only basis, with any borrowing above that level taken on capital and interest. This applies across all accepted repayment vehicles.
The bank has also removed the previous 70% LTV restriction for downsizing on loans above £1.5 million. Downsizing can now be used up to 75% LTV on an interest-only basis, with any additional borrowing above that level taken on capital and interest.
The new maximum LTVs for interest-only and part-and-part borrowing are as follows:
|
Loan size |
Interest only |
Part and part |
|---|---|---|
|
£80,000 – £1,500,000 |
75% |
85% |
|
£1,500,001 – £2,500,000 |
75% |
80% |
|
£2,500,001 – £5,000,000 |
75% |
75% |
|
£5,000,001 – £10,000,000 |
60% |
60% |
Clydesdale Bank has also revamped its affordability assessment for interest-only and part-and-part loans. Instead of calculating affordability as if the loan were fully capital and interest, the assessment now reflects the borrower’s actual repayment structure — potentially allowing higher loan amounts. The changes are already live in the bank’s affordability calculator.
Other updates include the removal of debt consolidation on interest-only borrowing (unless used for property improvements or repairs), clarification that a minimum equity requirement does not apply when lending on a second home, and refinements to policy regarding repayment vehicles such as the sale of another property, cash savings, or investments.
