Clydesdale Bank’s move to withdraw all buy-to -let products above 60% Loan to Value (LTV) from tomorrow has meant a flurry of activity as advisers rushed to rebroke higher LTV buy-to-let cases.
On Friday, Clydesdale Bank announced plans to drop its Loan to Value from 80% to 60% on all buy-to-let products with all final applications submitted online by 5pm Monday 11 May.
Lea Karasavvas, managing director at Prolific Mortgage Finance said its brokers are busy rebroking seven cases above the 60% Loan to Value mark this morning.
“This is a game-changer for the London market,” he said.
Andrew Montlake, director at Coreco said the fact Clydesdale based its rental calculation on the pay rate means London is “losing an important lender.”
“It could have been worse. A least they are still in the market at 60% but we’ll have to revisit a few of our clients,” he added.
Ying Tan, managing director at the Buy to Let Business said: “It will certainly impact our London clients where Clydesdale is popular due to rental calculation at pay rate.
“I don’t think this is the first of many retrenchments, quite the contrary in that I am aware of a number of new lenders coming to the market later this year specifically in buy to let. This looks to me to be an isolated case where the parent company has lost appetite in the UK market.”
Clydesdale Bank said: “Our notice period is very much in line with the normal period and these changes are happening all the time.”
National Australia Bank announced plans at the end of last week to sell off both Clydesdale Bank and Yorkshire Bank by the end of this year.
Some 70 to 80% of the bank will be purchased by NAB shareholders, with the remaining 20 to 30% to be acquired in a sale of shares in an initial public offering.
Clydesdale Bank is to be sold off in a demerger by National Australia Bank (NAB) which will see the business acquired in part by shareholders with the remainder listed on the open market.
The group, which includes Yorkshire Bank, will be sold off in a deal which is expected to be finalised by the end of the year. Some 70 to 80% of the bank will be purchased by NAB shareholders, with the remaining 20 to 30% to be acquired in a sale of shares in an initial public offering.
