Latest rate reductions add options for brokers in a tightening price war
Clydesdale Bank and The Mortgage Works (TMW) have announced a series of rate reductions across residential and buy-to-let ranges, giving brokers fresh options on fixed and discounted pricing.
Clydesdale – a bank in the process of moving under the Nationwide Building Society umbrella following a 2024 acquisition – is cutting selected fixed rates across its core residential, professional and broker-exclusive products from today (Jan. 26), with reductions of up to 0.45 percentage points. The changes affect business written up to 95% loan-to-value (LTV), including both new lending and product transfers.
Within the core residential range, some two- and five-year fixed rates between 65% and 95% LTV has decreased by as much as 0.45 percentage points for new customers and existing borrowers switching deals. The lender has also reduced pricing for professionals, with specific two- and five-year fixed rates for established and newly qualified professionals decreasing by up to 0.29 percentage points.
In addition, Clydesdale has made further adjustments to its broker exclusives. Purchase-only two- and five-year fixed products have been cut by up to 0.30 percentage points. Large loan residential exclusive products for purchase and remortgage at 50% LTV will see a 0.07 percentage point reduction on the two-year fixed rate. A two-year fee-offer exclusive for residential purchase and remortgage at 80% LTV is being trimmed by 0.19 percentage points.
On the buy-to-let side, Clydesdale’s exclusive two-year fixed product for purchase at 60% LTV have fallen by 0.10 percentage points. The lender has also introduced new two-year discounted standard variable rate (SVR) fee-offer products for product transfer business, with rates starting from 4.84%.
At the same time, Clydesdale has withdrawn its two-year discounted offset variable rate (OVR) products from sale. Brokers intending to place customers into these discounted OVR products are required to submit full applications by 8pm.
Meanwhile, The Mortgage Works, the specialist buy-to-let arm of Nationwide Building Society, has also reduced pricing on a selection of new business fixed rate products over the past week. The lender has cut rates by up to 0.20 percentage points on selected one-, two- and five-year fixed buy-to-let mortgages, following reductions of up to 0.15 percentage points the previous week. Its lowest buy-to-let rate now stands at 2.29%.
The new business changes include a one-year fixed buy-to-let mortgage for purchase and remortgage at 2.29%, a reduction of 0.20 percentage points. The product carries a 2% fee and is available up to 75% LTV.
A two-year fixed buy-to-let product for purchase and remortgage at 2.49%, reduced by 0.10 percentage points, is offered up to 65% LTV with a 3% fee. For remortgage-only customers, a two-year fixed rate at 2.84% has been cut by 0.03 percentage points and is available up to 75% LTV with a 3% fee, including free valuation and free legal services.
The Mortgage Works has also lowered the price of its five-year fixed remortgage-only buy-to-let product to 3.57%, a reduction of 0.10 percentage points. This product, available up to 75% LTV, also carries a 3% fee and includes free valuation and free legal services.
For intermediaries, the latest changes from Clydesdale Bank and The Mortgage Works add to the pool of lower-priced fixed and discounted options in both the residential and buy-to-let segments. Since the start of the year, several major lenders have moved to cut mortgage rates, intensifying what industry observers view as a renewed price war.
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