Clydesdale cuts hybrid interest only mortgage rates.
The Clydesdale Bank offers a product called low-start, which is a hybrid deal where an interest only mortgage is combined with a repayment mortgage.
For the first three years borrowers have an interest only mortgage, at the end of this period the deal switches to become a standard repayment mortgage.
Rates for this low-start mortgage have been cut by 0.2%.
Interest only rates apply for the first three years as follows:
With a 40% deposit a 60% loan to value product is offered at a rate of 2.89%. For 70% loan to value the rates is 3.19%, 75% loan to value 3.59% and 80% loan to value 4.29%. At the end of the three year interest only mortgage term all deals revert to the lender's SVR which is currently 4.95%.
The minimum mortgage advance is £100,000, fees are set at £999 for mortgages up to £500,000 and £1,499 for mortgages between £500,000 and £1 million. Affordability is assessed using repayment mortgage criteria.
With this deal the good news for borrowers is there is no repayment vehicle required, as it remains an interest only mortgage for just three years before reverting to a standard repayment deal. However it is a good product for home-owners who initially want to keep their costs low.
If you are interested in a quote, or would like to review this product against the wider market call Deal Direct on 0800 048 8828.
