Clydesdale adds to high LTV range and enhances income multiples
The 95 per cent LTV is available for purchase and remortgage for loans up to £570,000 with a maximum term of 35 years, with both two and five-year fixed rates.
This includes a two-year fixed rate with a rate of 2.67 per cent, with a £999 fee, and a fee-free option at 2.95 per cent.
There is also a five-year fixed rate at 3.08 per cent, with a £999 fee, whilst the free-free option is priced at 3.16 per cent.
To be eligible, flats should be in buildings of four storeys or fewer and cannot be ex-local authority or former Ministry of Defence properties. Applications for remortgage capital raising on new-builds are not accepted.
Newly-qualified professional options are available and have enhanced income multiples of 5.5 times.
The two-year fixed rate is priced at 3.22 per cent and the five-year fixed rate has a rate of 3.49 per cent.
To qualify, customers must be fully qualified within the last five years as an accountant, architect, barrister, chartered surveyor, dentist, medical doctor, pharmacist, pilot, solicitor or vet.
They should also have an income of £40,000 or more.
On the buy-to-let side, the lender has brought out a two and five-year fixed rate at 80 per cent LTV with a rate of 3.25 per cent and 3.28 respectively. Both come with a £1,999 fee.
Clydesdale Bank has also extended the maximum term for its capital and interest mortgages up to 85 per cent LTV to 40 years.
For capital and interest mortgages above 85 per cent LTV, residential interest-only mortgages and all buy-to-let mortgage the maximum term is now 35 years.
Clydesdale slashes rates by up to 96 bps
The largest reduction has been made to its two and five-year fixed rates for borrowers with a 10 per cent deposit or equity. Rates now start from 2.08 per cent for a two-year fixed product transfer with a £999 fee and 2.58 per cent for the five-year fixed option.
At 85 per cent LTV, two and five-year fixed rates have been cut by as much as 23 bps while 80 per cent LTV equivalents have seen reductions of up to 50 bps.
The bank’s buy-to-let products have been reduced by up to 60 bps.
Clydesdale has also opened up its newly-qualified professional range at 90 per cent LTV to more borrowers. The deals have a maximum loan size of £540,000 and the fee-paying options offer one standard free valuation.
Meanwhile, rates for new professionals at 85 to 90 per cent LTV have been cut by 51 bps.
Clydesdale Bank ups max LTV for new-build homes to 90 per cent
The maximum LTV was previously 85 per cent, and the change comes into force from today.
The lender’s maximum LTV for new-build residential flats is still 80 per cent LTV, while its maximum LTV for buy-to-let (BTL) houses is 80 per cent LTV for houses and 70 per cent LTV for flats.
Offers on new builds are valid for 180 days from the issue date, and builder incentives can be available on a case-by-case basis.
The lender defines a new build as a property that has not been previously occupied, a property sold by the builder or developer, a property built within two years of the mortgage application or converted into a flat within two years before the mortgage application.
Clydesdale Bank cuts rates by 0.28 per cent
The lender has reduced two-year and five-year fixed rates at 80 per cent loan to value (LTV) by up to 0.08 per cent. Its two-year fixed rate at 80 per cent LTV stands at 2.09 per cent, whilst its five-year fixed rate at the same tier is 2.29 per cent.
Clydesdale Bank has also reduced selected 85 per cent LTV two-year and five-year fixed rates by around 0.28 per cent.
Its five-year fixed rate at 85 per cent LTV now starts from 1.8 per cent, whilst its five-year fixed rate starts from 2.25 per cent.
The lender’s exclusive two-year and five-year fixed rate at 90 per cent LTV has fallen by up to 0.2 per cent, with its two-year fixed rate set at 2.25 per cent and its five-year fixed rate pegged at 2.77 per cent.
Clydesdale Bank has made rate reductions to its professional and newly qualified professional between 95 per cent and 90 per cent LTV by 0.1 per cent.
Its two-year fixed rate for professionals at 85 per cent LTV is now 2.1 per cent and its five-year fixed rate is 2.4 per cent.
For newly qualified professionals, its two-year fixed rate at 85 per cent LTV is 2.3 per cent, whilst its five-year fixed rate is 2.6 per cent.
Clydesdale Bank brings out 90 per cent LTV two-year fix and cuts rates
The two-year fixed rate purchase and remortgage product has a rate of 2.45 per cent and is available at 90 per cent loan to value (LTV). The product also comes with a free valuation incentive.
The lender has cut its five-year fixed rate purchase and remortgage product, also available up to 90 per cent LTV, from 3.19 per cent to 2.89 per cent.
Both these products are only available through intermediaries and are subject to a £1,999 fee.
Clydesdale Bank has also made a range of rate cuts across its residential deals.
Its no-fee two-year fixed rate at 75 per cent LTV has fallen from 1.68 per cent to 1.5 per cent, whilst its five-year fixed rate has gone from 1.72 per cent to 1.58 per cent.
The lender’s no-fee two-year fixed rate product at 80 per cent LTV has been cut by 0.18 per cent to 2.05 per cent. Its five-year fixed rate at the same LTV with a £999 fee has decreased by 0.14 per cent to 1.91 per cent.
Clydesdale Bank’s two-year fixed rate professional and newly-qualified professional product at 85 per cent LTV has been reduced by 0.3 per cent to 2.15 per cent.
Its two-year fixed rate at 90 per cent LTV for London and the Southeast has fallen by 0.3 per cent to 3.12 per cent, and its similar five-year fixed rate now stands at 3.36 per cent. These products are available for loans less than £750,00 and are subject to a £999 fee.
Virgin Money and Clydesdale Bank introduce contractor solution following IR35 changes
The tax changes were made to ensure contactors paid the correct tax if the work they did for a firm was equal to employment.
Virgin Money and Clydesdale will lend to contractors who fall inside of IR35 rules, where they are paid via an umbrella company or payroll service company.
If a contractor is paid by an umbrella company they must show the last two months of payslips, which takes into account gross pay after the deduction of statutory employer costs and payroll service costs.
The lenders said “complex contractor situations” would be assessed manually by an underwriter and considered on a “case by case basis”.
Virgin Money’s head of customer acquisition, Sarah Green, said: “As a bank we understand that contractors need mortgage products that are flexible enough to accommodate their professional and financial situations and that is why, following the IR35 changes we have made these positive amendments to our lending policy.”
Virgin Money and Clydesdale Bank are the latest lenders to make changes to its contractor offering, with Halifax adjusting its affordability and income criteria for contractors in June.
Virgin Money’s mortgage lending rises ahead of 2022 Clydesdale and Yorkshire rebrand
The lender reported higher volumes of new lending for all three brands, which continue to operate separately, which it attributed to “buoyant market conditions” ahead of the stamp duty holiday deadline.
CYBG, the parent company of Clydesdale, acquired Virgin Money in October 2018 in a £1.7bn takeover, with Virgin Money emerging as the lead intermediary mortgage lending brand.
Virgin is optimistic about the UK economic outlook, citing stronger GDP growth, lower unemployment, robust housing market and increased consumer confidence as positive indicators of an improving outlook.
It added that whilst the number of Covid-19 cases was increasing, especially those with new variants, and the impending rollback of government schemes were concerning the “strengthening backdrop” gave it “greater optimism about the pace of recovery”.
Virgin Money’s chief executive officer David Duffy said: “While COVID continues to impact the near-term, we have a strong capital position and robust provisions. We see great opportunities from further developing our digital capabilities to deliver an improved customer experience and greater efficiencies. We are well placed to grow profitably next year as we play our role to support the UK economic recovery.”
The bank said it was continuing its digital strategy to improve customer experience and drive efficiency in the business. It reiterated that it would do this by increasing customer’s adoption of digital technology, improving flexibility of employee working arrangements and further automation.
In the third quarter the lender launched its first greener mortgage product, which is said it would “develop further” in the coming months.
Virgin Money said that it had made continued progress in reducing its cost base in the third quarter, and that it expected underlying operating expense of less that £890m for the full-year and £430m for the half year.
Virgin Money launched its 95 per cent mortgage guarantee scheme product in May and was one of the original lenders to sign up to the scheme outlined in the Budget.
Coventry cuts fixes by 10 bps and Clydesdale adds broker exclusive
The lender also launched a 95 per cent LTV two-year fixed rate mortgage at 3.65 per cent for purchase and product transfer.
The rate cuts included the two-year fixed rate purchase product at 85 per cent LTV, with a rate of 2.05 per cent, down from 2.15 per cent. The product is fixed and with early repayment charges (ERCs) to 30 September 2023, and has a £999 product fee.
The five-year fixed at 90 per cent LTV was reduced to 3.15 per cent, from 3.25 per cent, for purchase, remortgage, further advance and product transfer. It’s fixed to 30 September 2026, with ERCs to that date, and a £999 fee.
The newly launched two-year fixed at 95 per cent LTV has an end date of 30 September 2023, with ERCs and no fee.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society (pictured), said: “Our high LTV residential mortgages are now even more competitive, which is great news for brokers and their clients with smaller deposits. Whether brokers are looking to help their clients take that all-important first step onto the property ladder, or to support those looking to remortgage to a lower rate, there’s a competitive option for a wide range of clients in our owner-occupier range.
“And we now have a two-year fixed, no fee option at 95 per cent LTV, which is great news for brokers with clients looking to keep their upfront costs low.”
Clydesdale Bank rate cuts
Clydesdale added a new broker exclusive five-year fixed product at 90 per cent LTV, with a rate of 3.19 per cent and fee £1,999.
The lender also cut rates across its two and five-year fixed residential mortgages at 80 per cent and 85 per cent LTV.
The two-year fixed at 80 per cent LTV, with no fee, was cut to 2.23 per cent, down from 2.28 per cent. At 85 per cent LTV, the two-year fixed rate, with £999 fee, came down to 2.18 per cent from 2.41 per cent.
The five-year fixed at 80 per cent LTV, with £999 fee, was cut to 2.05 per cent, from 2.11 per cent. At 85 per cent LTV, the five-year fixed, with £999 fee, was reduced to 2.54 per cent, down from 2.64 per cent.
Additionally, rates were cut on the two and five-year fixed products for London and the South East, at 90 per cent LTV, with £999 fee. The two-year rate came down to 3.42 per cent, from 3.52 per cent. The five-year rate was cut to 3.66 per cent, from 3.76 per cent.
The two and five-year fixed rate products for professionals were reduced by up to 0.15 per cent.
Virgin unveils three new products and Clydesdale adds large loans deal
The new products include a two-year fixed rate mortgage in the lender’s purchase exclusive £1,000 cashback range, which comes with a rate of 1.28 per cent at 75 per cent loan to value (LTV), and a £1,495 fee.
There is also a new 80 per cent LTV option in the same range, fixed for two years at 1.93 per cent, with a £995 fee.
Additionally, the lender has cut rates on other two and five-year deals in the range, such as reducing the five-year fixed at 85 per cent LTV by 0.12 per cent to 2.58 per cent.
The other new product announcement was a three-year fixed-rate fee saver deal, with a rate of 3.64 per cent at 95 per cent LTV.
There were further rate cuts of around 0.2 per cent on the core residential range two and three-year fixed products, across the LTV range.
Virgin rate cuts across the range
Virgin’s Greener Mortgage range saw cuts of 0.2 per cent on the two-year fixes at 65 and 75 per cent LTV, both with a fee of £995.
At 85 per cent LTV, a two and a five-year fixed Greener Mortgage were reduced by 0.05 per cent, to 2.23 per cent and 2.53 per cent respectively, both with a £995 fee.
Buy to let (BTL), BTL portfolio and shared ownership mortgages also saw a slew of rate cuts across two and five-year deals.
Highlights included a 0.24 per cent cut on a five-year fixed BTL deal at 80 per cent LTV, giving a rate of 3.35 per cent, and a £995 fee.
In BTL portfolio, the five-year fixed at 60 per cent LTV was reduced by 0.21 per cent to 1.88 per cent, with a £1,999 fee.
Meanwhile rate cuts across the lender’s shared ownership range included a 0.44 per cent reduction on the two-year fee saver at 85 per cent LTV, to 2.99 per cent.
Clydesdale Bank adds new large loan deals
Clydesdale Bank has introduced new rates on loans of more than £1m and cut rates on other residential deals.
The new product offers a two and five-year fixed product with rates starting at 1.79 per cent, on loans of more than £1m, at 65 per cent LTV, with a £1,999 fee.
Rate were cut on some 80 and 85 per cent LTV, two and five-year fixed deals, by up to 0.11 per cent and 0.08 per cent respectively.
The rate on the lender’s professional and newly qualified professional two and five-year fixed products, at 85 per cent LTV, were reduced by up to 0.05 per cent.
Clydesdale Bank also said it would withdraw its exclusive two and five-year fixed rate deals at 90 per cent LTV, with a £1,999 fee.
Meanwhile, rates were increased by 0.1 per cent on the exclusive professional range, on two and five-year fixed deals at 90 per cent LTV.
The same rate increase applies to the London and South East two and five-year fixed deals at 90 per cent LTV.
Clydesdale removes 90 per cent LTV FTB product and cuts rates on 85 per cent LTVs
The product is the only first-time buyer product in its roster according to its website. The product has a rate of 2.89 per cent and a £1,999 fee.
The lender still offers seven 90 per cent LTV products, four of which are two-year products and three of which are five-year fixed products.
The lender also announced that it would be reducing rates on a range of 85 per cent LTV products, including its two and five-year fixed rate products with a £999 fee which will now start at 2.48 per cent.
According to its website, its current rate for its 85 per cent LTV product stands at 2.54 percent and its five-year product rate is 2.75 per cent.
Its two-year fixed rate fee offer product at 85 per cent LTV is also being reduced by 0.03 per cent to 2.78 per cent.
The lender has also cut rates for its two-year fixed rate 85 per cent LTV professional and newly qualified professional will be reduced and start from 2.65 per cent.
There are currently two, two-year fixed rate products aimed at professionals and newly qualified professionals, with rates standing at 2.76 per cent and 2.96 per cent respectively.
They are aimed at accountants, architects, barristers, chartered surveyors, dentists, engineers, financial advisers, medical doctors, nurses, optometrists, pharmacists, pilots, police officers, solicitors, teachers, vets.