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Clydesdale Bank: European Mortgage Credit Directive (MCD)

8th March 2016

Managing Existing Applications & Key Information

At Clydesdale Bank we have been working hard to prepare for the implementation of the MCD rule requirements which are introduced on the 21st March 2016.

Following our general MCD update last month we want to now let you know how your existing applications will be supported by us during this transition period.

Our Key System Updates

From Friday 11th March, and during the weekend of the 12th & 13th, we will be updating our key broker systems; to comply with the MCD rule requirements. These changes will impact:

Mortgage Illustration Generator

The generator will be unavailable on Sunday 13th March.

From Monday 14th March the renamed mortgage illustration generator (nee KFI Generator) will produce a mortgage illustration which includes the MCD ”top up” information.

The new illustration templates will reflect the rule changes on APRC & APRC2, our binding offer reflection period and changes that are specific to MCD regulated Consumer Buy to Let lending.

Broker Online application

The Online application will be unavailable from 6pm Friday 11th March.

From Monday 14th March the Advice/ Sale information section of the online application will include a new regulatory status for a Consumer Buy to Let.

Any pending application continued from the 14th March can be updated to capture the new CBTL regulatory status.

Third Party Sourcing Systems

Mortgage Brain and Trigold have commenced their rolling programme of activity to deploy the new MCD KFI plus and ESIS templates.


Where a pre-MCD offer has been issued, unless the customer informs us they are not happy to go ahead, we will proceed on the basis that the customer has agreed to the terms of the mortgage. The customer still has the right to change their mind up until they are ready for the mortgage to complete.

The MCD framework will not be applied to any pre-MCD offer accepted before 21st March 2016.

The new MCD binding offer, including the 7 day reflection period from the day it is received by the customer, will be issued to customers from Monday 14th March.

Existing applications

If you have illustrated and advised on a CBTL mortgage before the 14th March we would ask that you annotate this fact in the additional information section of the online application system.

For an application which has not already offered by 21st March 2016 we may need to contact you to confirm the following: “Would this case be defined as a regulated Consumer Buy to Let application under the new guidelines being introduced under the European Mortgage Credit Directive (MCD) from 21 March 2016?" This will be included our standard requests for information when applicable.

The Bank will not require any additional information for residential applications.

Homebuyers Survey

From the 14th March we will no longer allow customers to instruct a Homebuyers survey through the Bank.

Our mortgage tariff, online application system and web pages will be updated in due course to reflect this withdrawal. The only valuation type for selection will be a standard mortgage valuation.

From 14th March, until our systems are updated, we would ask that submitted mortgage applications do not include the selection of a Homebuyers survey.

Any customers who wish to have a Homebuyers survey carried out, must arrange this with the surveyor directly.

The contact numbers for our valuation panel managers are provided below:

SPM (Scotland) - 01236 853100

Esurv (England & Wales) - 0800 1699661

Foreign Currency borrowers: Product Transfer

Our existing processes are being reviewed that will allow our existing customers, who are defined as Foreign Currency borrowers, the opportunity to apply for a product transfer.

The full process, to support this specific group of existing customers, will be communicated shortly.

Where do I go for further information?

View the MCD updates on or if you have questions specific to Clydesdale Bank please speak to your Relationship Manager.

Updates will be communicated via email and posted to to keep you fully informed on our progress.

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For all lending policy and new business enquiries:

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