Press Article
FT Adviser 19th Jan 2006
New Product - Clydesdale plugs into offset market
CLYDESDALE Bank has rolled out an offset mortgage range to the intermediary market.
All the products revert to base rate tracker rates rather than standard variable ones. The arrangement fee for the residential products and offset buy-to-let lifetime tracker – 5.29 per cent – is £449. Buy-to-let fixed rate mortgages have a £499 arrangement fee. The entire product range is available for purchase and re-mortgage.
The rate of the two and five-year buy-to-let fixed mortgages is 5.35 per cent. The residential products include a 4.9 per cent offset tracker mortgage for professionals with an annual income of at least £60,000, available through Clydesdale’s broker partners.
The mortgage has a loan-to-value of 85 per cent and homebuyers are not subject to a higher lending charge or early repayment charges. Customers can also arrange a standalone mortgage at the same rates.
Dean Cutbill, general manager of third-party distribution for Clydesdale, said: “Offering base rate tracking and the choice of either taking offset or not is an indication of the flexible, competitive long-term good value our new product line-up promises our partners’ clients.
“Last year saw us making significant in-roads into the intermediary market and this new suite of products underlines our commitment to maintain our momentum in 2006.”
Verdict: James Carter, of Twickenham-based Virtue Financial, said: “The rates do look appealing for some clients.
“More people may be attracted to offset lifetime trackers due to increased costs involved in re-mortgaging.”