Clydesdale Bank Updates Mortgage Rates and Lending Criteria: August 2025 Changes Explained

Introduction: Key Clydesdale Bank Mortgage Rate Updates for UK Borrowers

Clydesdale Bank has announced significant changes to its mortgage rates and lending criteria, impacting a wide range of borrowers across the UK.

Whether you’re a homeowner, first-time buyer, property investor, or a professional seeking a tailored mortgage, these rate reductions and specific product changes are set to affect your options from 21 August 2025. Understanding how these updates fit your needs can help you secure the best mortgage product for your circumstances.

Summary of Clydesdale Bank Mortgage Rate Changes

• Rate Reductions:
  • Selected 2 and 5 year fixed rates for Core Residential and Product Transfer: reduced by up to 0.51%
  • 2 year Discount Offset rates: reduced by 0.10%
  • Residential Purchase & Remortgage Large Loan (2 and 5 year): reduced by up to 0.38%
  • Residential Remortgage 75%-80% LTV (2 year): reduced by up to 0.24%
  • Selected Residential Purchase (2 and 5 year): reduced by up to 0.19%
  • Residential Product Transfer 65% LTV (5 year fixed): reduced by 0.05%
  • Professional 2 year fixed rates: reduced by up to 0.38%
  • Newly Qualified Professional 2 year fixed: reduced by 0.05%
  • Buy to Let (BTL) 60–75% LTV (2 and 5 year): reduced by up to 0.35%
• Rate Increases:
  • Core Residential 90% LTV (5 year fixed): increased by 0.19% to 4.58%

Most changes represent reductions, providing more competitive options for a range of borrowers—though higher LTV products for those with smaller deposits have seen minor increases.

Who Benefits from These Clydesdale Bank Changes?

• Homeowners and Remortgagers: Lower fixed-rate and offset options offer potential for reduced monthly payments and greater flexibility.
• Professional Borrowers: Both established and newly qualified professionals benefit from targeted reductions on fixed rates.
• Buy-to-Let Investors: Reduced rates on 60-75% LTV options could translate to improved rental yields or affordability on new purchases and remortgages.
• Large Loan Seekers: Substantial reductions on larger mortgages make this an attractive time for high-value home purchases or refinances.
• Product Transfers: Existing Clydesdale Bank borrowers considering a rate switch may now access lower-cost options.
• High Loan-to-Value Borrowers (90% LTV): Note the rate increase to 4.58% for 5-year fixes—those with smaller deposits may wish to review affordability or seek advice on alternative options.

Key Features and Special Lending Criteria

• Offset Mortgage Option: 2 year Discount Offset rates lowered—helpful for borrowers wanting to reduce interest using linked savings.
• Specialist Professional Mortgages: Reduced fixed rates for professionals, with further savings for newly qualified applicants.
• Buy to Let Focus: Savings for landlords at 60%–75% LTV, appealing for portfolio owners or first-time landlords aiming to maximise return.
• Product Transfers: Existing customers see modest rate reductions, supporting long-term financial planning without the need for a full remortgage process.

Why Consider a Clydesdale Bank Mortgage in August 2025?

• Competitive fixed-rate and offset options—especially if you have significant equity or seek large loan amounts.
• Specialist support for professionals and buy-to-let investors.
• Track record in service and underwriting flexibility, with tailored support for remortgagers and those seeking product transfers.
• Transparent rate update process, with clear deadliness for securing current deals.

Take the Next Step: Get Personalised Mortgage Advice

With changes affecting a range of products and borrower types, it’s essential to review your options. For up-to-date rates, tailored recommendations, and guidance on how these Clydesdale Bank updates could impact your plans, contact our expert mortgage team today. We’ll help you understand the full market, compare deals across lenders, and find the right mortgage solution for your goals.

FAQs: Clydesdale Bank Mortgage Rate Updates – August 2025

• Who qualifies for Clydesdale Bank’s new mortgage rates?
  Eligibility varies by product. Most UK residents, homeowners, professionals, buy-to-let investors, and borrowers seeking large loans or remortgages may be eligible, subject to affordability, credit checks, and LTV criteria.
• How do the rate changes affect my monthly mortgage payment?
  Rate reductions may lower your monthly payments. However, rates for high LTV (90%) 5-year fixes have increased. Personal impacts depend on your balance, term, and product choice—ask us for a tailored quote.
• Are these changes suitable for first-time buyers?
  First-time buyers may benefit, especially if they have at least 20% deposit. 90% LTV rates have risen, so options for lower deposits may be less competitive—contact us for alternatives.
• What is an offset mortgage and is it available?
  Offset mortgages link your savings to your mortgage balance, reducing interest paid. Clydesdale Bank’s two-year discount offset rates have been lowered—ideal for those with savings seeking flexibility.
• How can I apply or find out if I qualify?
  Get in touch with our mortgage advisers for an eligibility check and comparison across all lenders. We’ll guide you through your options and application process.