A new high loan to value (LTV) mortgage has now been launched by Clydesdale. Targeted at first time buyers, it has been dubbed the ‘mates mortgage’.

Last Thursday, Clydesdale launched a new product. Clydesdale will not call the plan a mates mortgage but this is certainly what the media is calling it, as noted in the FT Adviser.

This new product is aimed at the professional first time buyer and at new build properties in particular. The professional FTB product allows a higher loan value than the new build option. Loans of up to 90 percent are free of any further mortgage security costs.

With a two year fixed deal at 5.49 percent that later reverts to the Standard Variable Rate or a two year fixed 4.49 per cent deal reverting to an offset variable interest rate, the product allows up to a £500,000 loan value and both deals come with a £999 fee.

To qualify for the professional FTL option, a range of occupations are included, such as barrister, pilot, doctor, solicitor, vet, pharmacist and chartered surveyor.

Clydesdale representative, John Tooth, reportedly said the product launch was down to a requirement for higher LTV products for specific sectors and commented:

“With these new products, we are taking a first step to help meet that need.”

The mortgage plan aimed specifically at new build properties has been launched together with house building Persimmon, Taylor Wimpey and Barratt. The products are only available through selected mortgage broker panel members.

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