24th February 2012
Today we are announcing important changes to our lending criteria for Interest Only Residential Mortgages which take effect on 1 March 2012.
In common with other lenders, we will now require additional information to be provided to evidence how the outstanding capital will be repaid at the end of the mortgage term. To assist you with this, a supplementary form is now available from the Literature page on our website to collate the details and this must be completed and submitted with the application form.
We are pleased to announce that, where the repayment strategies meet the Bank’s criteria and can be evidenced, the maximum Loan to Value (LTV) will remain at 75%. Where the repayment vehicle is either cash savings or downsizing, the maximum LTV will be 50%.
Full details of acceptable repayment strategies are available now from the Criteria page of our website.
Other key changes are:
The revised criteria will be applied to all new applications received from 1 March 2012.
The following products will be withdrawn from 5pm today, 24 February:
To help you manage any applications in progress, we will accept applications for the withdrawn products up until:
For further information about this communication, please contact your local Relationship Partner.
If you are not an intermediary of the Bank, you should not refer to the information contained in this website. If you are a professional and you reproduce any part of the information contained in this communication, to be used with or to advise retail clients, you must ensure it conforms to the Financial Conduct Authority's mortgage conduct of business rules. This site is intended for UK residents (who are intermediaries of the Bank) unless otherwise stated.
Clydesdale Bank PLC Registered in Scotland (Number SC001111). Registered Office: 30 St Vincent Place, Glasgow G1 2HL.