Clydesdale Bank has announced significant rate hikes across its entire range of residential mortgages starting today, Friday, May 3rd. These adjustments are likely to impact both new and existing customers.

Clydesdale Bank’s rate adjustments focus predominantly on fixed-rate mortgages, which are popular among homeowners for their predictability in repayments. The increases vary depending on the type and term of the mortgage:

For Those Remortgaging

• 75% Loan-to-Value (LTV) Remortgages: Both the 2-year and 5-year fixed-rate mortgages in this category will see rate increases of up to 0.30%. This change affects homeowners who are looking to switch their existing mortgage for a better deal at the same LTV ratio.

For Home Purchasers

• Selected Purchase Mortgages: Similarly, those planning to buy a home with a 75% LTV can expect the rates for both 2-year and 5-year fixed mortgages to increase by up to 0.30%.

High-Value Mortgages

• £1m to £2m Loans: For higher-value properties with LTVs at 65% and 75%, both the 2-year and 5-year fixed-rate mortgages are set to increase by 0.20%.

Specialised Products

• Professional Products: Clydesdale is also increasing the rates on its professional products (aimed at qualified professionals such as doctors and lawyers) at 75% LTV for both 2- and 5-year terms, which will see an increase of up to 0.35%.
• Offset Discount Products: These products, which allow mortgage holders to link their savings to their mortgage to reduce the interest paid, will also experience rate hikes of up to 0.35%.

Timeline and Additional Changes

Alongside rate increases, Clydesdale Bank has announced changes to the end dates of these mortgages, which will now all conclude in August of the respective year the term ends. This small but notable change means that the end dates of mortgage agreements are standardised to a specific month, potentially simplifying administration for both the bank and its customers.