Clydesdale Bank Offset Mortgage, Reviewed By Mortgage Experts
January 2008 Update - Clydesdale Bank are not currently offering any offset mortgage deals. All existing deals were withdrawn from the market on the 24th of December 2007 due to the lack of clarity in the mortgage market at that time. We believe this to be a temporary situation and suggest you read the other reviews available. Rates shown below will be out of date are not applicable please call us on 0845 6033173 for the most recent updates 
The Clydesdale Bank offset mortgage allows borrowers to link current and
savings accounts to their offset mortgage to save on the interest they repay. The Clydesdale Bank offset mortgage is available up to 95 per cent of the value of the property being mortgaged and there are no early repayment charges. The variable interest rates for the Clydesdale Bank offset mortgage are tiered for borrowers with loans under £75,000; from £75,000 to £250,000 and above £250,000. The interest rates vary between
5.49 per cent and 5.89 per cent depending on the tier, with annual percentage rates (APRs) at between 5.7 per cent and 6.3 per cent. There is an arrangement fee of £349 for the Clydesdale Bank offset mortgage. The minimum loan amount for the Clydesdale Bank offset mortgage is £25,000. The Clydesdale Bank offset mortgage allows borrowers to overpay, underpay and take repayment holidays. Payment holidays are only allowed after previous overpayment. However remember underpayments and payment holidays could increase the mortgage term and/or the total amount payable
Who Benefits From A Clydesdale Bank Offset Mortgage?
Clydesdale Bank says its offset mortgage is suited to people whose current account is normally in credit or who have savings. With the Clydesdale Bank offset mortgage, borrowers can link up to six current accounts and six savings account to the Clydesdale Bank offset mortgage account. All linked accounts must be in the name of someone who is also on the mortgage account. Although borrowers do not have to switch their current account from another bank, the bank advises that having all accounts at Clydesdale is the best way to get maximum benefit from a Clydesdale Bank offset mortgage.
For those seeking an alternative to the Clydesdale Bank offset mortgage, the bank also offers a current account mortgage which comes in two flavours. Unlike the Clydesdale Bank offset mortgage, its current account mortgage deal combine the borrower's mortgage, current account and any loans into a current account with a borrowing limit. The interest rate is between 5.54 per cent and 6.44 per cent, with an APR of between 5.8 per cent and 6.8 per cent. There is an arrangement fee of £349 but there are no early repayment charges.
Clydesdale Bank Current Account Mortgages
The Clydesdale Bank current account mortgage comes in two flavours: Rapid Repay and Flexible Repay. The Rapid Repay option has a maximum loan to value of 95 per cent, though a higher lending charge is payable for mortgages over 90 per cent of the property value. The current account mortgage has a built in safety limit, which is the amount borrowers can withdraw if they want to be able to repay their mortgage on time. This can be increased as the equity in the house grows. The Flexible Repay option is available up to 90 per cent of the property value. This is an interest only option, which means the debt will be cleared more slowly.
Clydesdale Bank also has a flexible repayment mortgage which it launched in 1994. In 2000, the bank was the first high street lender in Scotland to offer current account mortgages*.
