The lender said residential products will also be available above £1m up to a maximum LTV of 50%.
In May, Clydesdale dropped its LTV from 80% to 60% on all buy-to-let products following an announcement by National Australia Bank that it planned to sell off both Clydesdale and Yorkshire Bank by the end of this year.
Brokers called the removal of higher LTV buy-to-let products a “game-changer”, particularly for the London market as Clydesdale bases its rental calculation on the pay rate.
Clydesdale’s new buy-to-let products are now a two and five-year fixed mortgage at 70%, the first with an initial rate of 3.89% at the second with an initial rate of 4.49%. All buy-to-let loans above 60% LTV have a maximum loan of £500,000.
From Tuesday 9 June, the bank will be withdrawing its buy-to-let two and five-year fixed mortgages at 60% LTV with initial rates of 2.79% and 3.89%, to be replaced with products on a higher intial rate of 3.19% and 4.09%, respectively.
A spokesperson from Clydesdale Bank said: “These are business as usual changes as we actively manage the product range.”
But brokers called the move a ‘knee-jerk reaction’ saying that the lender was likely to have seen high levels of business prior to the LTV reduction go to “to virtually nil”.
David Hollingworth, associate director, communications, London & Country, welcomed the move: “Buy to Let is a very competitive market and Clydesdale has certainly shown it can play an important role with compelling criteria. Although not yet back at the highest end of the LTV scale, this widened product range is therefore good news.”
