Good news for some homeowners, but bad news for those with small deposits, as Clydesdale Bank tweaks mortgage rates.

Clydesdale Bank, part of the Virgin Money group, has announced changes to its mortgage rates, with some borrowers facing higher costs while others could secure a cheaper deal.

From tomorrow, June 14th, buyers with smaller deposits will be hit with higher rates on certain fixed-rate mortgages. This includes those looking for a five-year fixed-rate deal at 95% loan-to-value (LTV), meaning those with only a 5% deposit or equity in their home. These rates will climb by 0.2 percentage points, pushing the starting rate to 5.54% with a £999 fee.

Those seeking a two-year fixed-rate deal at 90% LTV will also see an increase, albeit smaller. These rates are rising by 0.15 percentage points to 5.34%, with a £1,499 fee.

However, there is some good news for those with larger deposits or more equity in their homes.

Clydesdale is cutting rates on some residential purchase and remortgage deals for borrowers with at least a 25% deposit or equity (75% LTV and 65% LTV deals). The biggest reduction is a 0.1 percentage point drop. As an example, Clydesdale’s current five-year fixed-rate deal at 65% LTV stands at 4.77% with a £1,999 fee.

Existing Clydesdale customers also get a potential boost, with rates for those switching to a new fixed-rate deal set to be lowered by up to 0.1 percentage points from June 14th.