Clydesdale Bank is set to increase rates across selected products as of tomorrow, Tuesday 19th March.
For both new and existing residential customer products, selected 2- and 5-year 65% and 75% loan-to-value (LTV) fixed rates will be increased by up to 0.13%.
In addition, its 2-year 75% LTV professional fixed rate will be increased by 0.05%, while a number of its 2- and 5-year fixed rate exclusive residential deals will rise by up to 0.10%.
The lender is also reducing selected products across its BTL and Interest Only (IO) ranges.
Across its new and existing BTL customer products, selected 2- and 5-year fixed rate BTL products will be reduced by 0.30%.
Meanwhile, its 2- and 5-year IO 80% LTV fixed rate for both new and existing customers will be reduced by 0.05%.
For brokers currently applying for one of these products on behalf their customer, Clydesdale has urged for applications to be submitted by 8pm today.
Reaction
Mark Robinson, managing director at Albion Forest Mortgages:
“The residential mortgage market is all over the place right now. Some lenders are making multiple increases in a week, and others are randomly dropping rates. At this stage it’s almost anyone’s guess what could happen next. Whilst the market is turbulent at the moment, the lowering of buy-to-let rates is a welcome change. Landlords appear to have seen far fewer rate decreases lately.”
Michelle Lawson, director at Lawson Financial:
“The mixed bag of increases and reductions further highlights the uncertainty and volatility in the mortgage market at a time when people need stability. It’s excellent to see a lender giving 24 hours’ notice of changes, which at least means borrowers can be contacted and can make an informed rather than a rushed decision.”
Darryl Dhoffer, adviser at The Mortgage Expert:
“Joining the interest rate-rising train is now Clydesdale Building Society. Though these are marginal increases, they will still compound borrowers’ already high interest mortgage woes. Better news is a reduction to their buy-to-let rates, which are more significant and will be welcomed by landlords.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“It’s not even time for the second coffee of the day, and the rate increase emails have started again. Thankfully, these are only marginal changes but there’s a good chance we’ll see a number of lenders updating their fixed rate pricing this week, especially after the inflation numbers and the Bank of England Monetary Policy Committee meeting. It’s hold on to your hats time.”
