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Clydesdale and Yorkshire launch Low Start mortgages

Robyn Hall

August 19, 2013

Low Start Mortgages begin on an interest only basis at a fixed rate for the first three years, automatically converting to capital and interest repayment basis for the remaining term of the loan.

Andrew Pearce, retail director for Clydesdale and Yorkshire Banks, said: “At Clydesdale and Yorkshire Banks we are focused on meeting the differing needs of our range of customers and we recognise that there are stages in life when it would be useful to be able to make lower mortgage payments.

“Low Start has been designed to meet this specific need within the market for a mortgage which initially offers lower payments but also provides the peace of mind that the full loan will be paid off over the term of the mortgage.”

Low Start Mortgage Product Details:

• The maximum loan to value for the Low Start Mortgage is 80%

• Standard product features, eligibility criteria and the approach to underwriting are in line with Clydesdale and Yorkshire Banks’ full mortgage product range

• Customer affordability at the outset is assessed based upon the higher capital and interest payment

• At the end of the fixed rate period the mortgage reverts to Standard Variable Rate (currently 4.95%)

• When the fixed rate period ends the customer will be invited to review their mortgage and could switch to another deal in line with the standard process at the end of a fixed term

• Customers cannot take another low start mortgage

• Maximum loan amount – £999,999


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