Clydesdale Bank is a Scottish commercial bank which offers a range of buy to let mortgages for its customers.
Types of Buy to Let mortgage
Clydesdale Bank offer various types of buy to let mortgages to match different kinds of borrowers and their requirements.
Interest only buy to let mortgages offer lower monthly payments as you are just covering the interest on your mortgage, but you will then have to pay off the capital in full when the mortgage ends.
Capital and interest mortgages mean that you pay an extra amount each month on top of the interest which goes towards clearing the capital. This can leave you will less or nothing to pay when the mortgage term ends.
Fixed rate buy to let mortgages give you a set rate of interest for an introductory period, which is normally 2.5 years. This can make your outgoings and return on investment more predictable.
Tracker mortgages give you a variable rate of interest, but one that is set at a predetermined level above the Bank of England Base Rate (or an equivalent). This keeps your interest rate in line with inflation.
Lending criteria for Clydesdale Bank Buy to Let mortgages
If you wish to apply for a buy to let mortgage with Clydesdale Bank you must:
- Be aged 18 or over
- Have a deposit of 25%
- Be expecting to earn at least 125% of your repayments in rental income
With a Clydesdale buy to let mortgage you can:
- Borrow up to 80% of your property’s market value
- Choose to repay early (although a fee may be charged for this)
If you do not qualify for a Clydesdale Bank buy to let mortgage there are many other lenders each with their own individual lending criteria which may suit you better. To find out more about your options it is a good idea to consult a professional mortgage advisor.
Interest rates on Clydesdale Bank Buy to Let mortgages
When borrowing money for any kind of investment, getting a good interest rate can significantly impact how profitable your investment ends up being. This is no different from buy to let properties.
In fact, your interest rate is doubly important as most lenders will require your monthly rental income to exceed your mortgage repayments, so how much interest you pay will partially determine how much tend you need to change.
Your loan to value ration or LTV will significantly impact the kind of interest rates you are likely to be offered. LTV is a measure of the size of your mortgage versus the market value of your home, so a £50,000 mortgage on a £100,000 property would give you an LTV of 50%. Most lenders will charge higher interest rates on mortgages with a higher LTV.
Compare Buy to Let mortgage rates
Our free mortgage calculator can help you find the most attractive deals on buy to let finance, allowing you to minimise your repayments and maximise your return on investment. All you need to do is click the link and choose “Buy to Let” in the “Reasons for mortgage” field. Then you will be able to find top deals that match your borrowing requirements from all the leading lenders.
Independent Buy To Let Mortgage Advice
Remortgaging is particularly popular at the moment as interest rates are low.
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Whether it will be a good idea for you to remortgage depends on a number of factors, including your goals and your personal circumstances.
However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.
If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).
If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice on Clydesdale & alternative lender options.
