Clydesdale Bank withdraws from the mortgage market and stops lending

Clydesdale Bank to stop offering new mortgages

Clydesdale Bank has confirmed it will no longer offer new mortgage loans, marking the end of one of the more flexible and broker-friendly lender options in the UK mortgage market. The message states, "Five years after joining Virgin Money, we've switched off Clydesdale Bank's website."

The lender withdrew its new business fixed-rate products earlier this year and has now confirmed those deals will not be reintroduced. Its remaining Clydesdale variable-rate mortgage products are due to be withdrawn at 8pm on Wednesday, 1 July 2026.

New Clydesdale cases for variable-rate products can still be submitted until 1 July 2026, and existing applications in the pipeline will continue to be processed as normal. Existing mortgage offers will be honoured.

However, from 1 July 2026, Clydesdale will no longer be able to process material changes that require a new application, such as adding or removing applicants.

What does this mean for existing Clydesdale mortgage customers?

Existing Clydesdale mortgage borrowers do not need to do anything.

Clydesdale has confirmed it will continue to support existing customers and will keep offering product transfer deals through its existing channels, including via mortgage brokers. The lender will also continue to accept applications for porting and additional borrowing.

This means borrowers with an existing Clydesdale mortgage should still be able to review new rate options when their current deal expires, move their mortgage to a new property where criteria are met, or potentially borrow more money.

Are Virgin Money mortgages affected?

Virgin Money residential mortgages are not affected by this change. Brokers, like Trinity Financial, can continue to submit Virgin Money mortgage applications.

What was Clydesdale Bank good for?

Clydesdale Bank had become a useful lender for brokers placing more complex mortgage applications. It was not always the cheapest lender in the market, but it was often valued for its flexible underwriting and willingness to look at cases that did not fit more automated high-street lending models. 

The lender was particularly useful for borrowers with larger loans, higher incomes, complex income structures, professional applicants, bonus income, self-employed income, contractors and some more unusual circumstances. Clydesdale’s ability to take a pragmatic approach meant it was often considered for cases where affordability, income evidence or property circumstances needed more manual assessment. 

For clients borrowing larger sums, Clydesdale could be a strong option because brokers were often able to speak to underwriters or business development managers and explain the case in detail before submission.

Was Clydesdale popular with mortgage brokers?

Clydesdale was popular with many brokers because it gave the market another flexible lending option. It was not necessarily a mass-market lender for every borrower, but it had a valuable role in the specialist and higher-income part of the mortgage market.

Many brokers used Clydesdale for clients who had strong overall financial profiles but needed a lender prepared to look beyond a straightforward salary-and-multiple calculation. 

This included borrowers with variable income, bonuses, professional income, larger mortgages or more complex situations where a more rigid lender might decline the application.

It is fair to say it was not always easy to get mortgages through, and there were often long processing delays, but it did offer mortgages that other lenders wouldn't.  

Will other lenders take similar applications?

Some Clydesdale-style cases will still be placed with other lenders, but borrowers may have fewer options.

Lenders such as Virgin Money, Barclays, HSBC, Santander, NatWest, Nationwide, Accord, Coventry Building Society and some private banks may be able to help depending on the client’s income, deposit, credit profile, loan size and property type.

For larger or more complex cases, private banks and specialist lenders may also be considered, particularly where clients have significant assets, bonus income, investment income or international income.

However, not every lender has the same appetite as Clydesdale had for complex underwriting. Some borrowers may now need a larger deposit, a different mortgage structure, a lower loan amount, or more detailed income evidence to secure a mortgage.

Is this a loss to the mortgage market?

Clydesdale’s withdrawal from new mortgage lending is a loss for the broker market because it reduces choice, particularly for borrowers who do not fit standard lending criteria.

The most affected applicants are likely to be higher earners, professionals, borrowers with bonus or variable income, self-employed applicants and clients looking for larger mortgages. These are often the types of borrowers who need a more flexible underwriting approach.

Aaron Strutt, product director at Trinity Financial, said: “Clydesdale was a useful lender because it would often look at cases with a bit more flexibility than some of the bigger banks. It was particularly helpful for larger loans and borrowers with more complicated income, and it often issued much larger buy-to-let mortgages, where the rental income did not stack up, but the client had a high income. There are still lenders available for these clients, but Clydesdale's leaving the new lending market means brokers will have one fewer option when trying to place more complex applications.”

What should borrowers do?

Borrowers who were considering a Clydesdale mortgage should speak to a broker as soon as possible, especially if they want to apply before the 1 July 2026 deadline for the remaining variable-rate products.

Existing Clydesdale borrowers approaching the end of their fixed rate should review both product transfer options and the wider remortgage market. In some cases, staying with Clydesdale may be the simplest option, while in others another lender may offer a cheaper rate or more suitable terms.

Trinity Financial’s brokers regularly help clients compare product transfers, remortgages and large-loan options from a wide range of lenders. The right approach will depend on the borrower’s income, deposit, property, credit profile and whether they need a straightforward mortgage or a more flexible lender.

Which other lenders have pulled out of the market in recent years? 

Lender / brand	What happened	Why it matters
Clydesdale Bank	Stopping new mortgage lending. Remaining variable-rate new business products are being withdrawn from 1 July 2026. Existing customers will still have product transfers, porting and additional borrowing options.	A loss for brokers because Clydesdale was useful for larger loans, professional clients and more complex income.
MPowered Mortgages	Stopped accepting new mortgage applications after 5:30pm on 28 October 2025. MPowered also said product transfers would no longer be available. (Mpowered Help)	This was more concerning for existing borrowers because the lender said product transfers were being withdrawn, potentially forcing borrowers to remortgage elsewhere.
Post Office Money mortgages	Post Office and Bank of Ireland confirmed they would no longer provide mortgages under the Post Office brand. Existing customers were unaffected. (Post Office)	This removed another well-known consumer mortgage brand, although Bank of Ireland UK continued lending under its own brand.
Sainsbury’s Bank	Stopped new mortgage sales in 2019 and later sold its mortgage book to The Co-operative Bank. Sainsbury’s said the mortgage-book sale was part of “closing the chapter” on its mortgage offering. (Investegate)	Another supermarket bank exited mortgages, reducing mainstream brand choice.
Tesco Bank	Pulled out of new mortgage lending in 2019 and sold its UK residential mortgage portfolio to Lloyds Banking Group/Halifax. (Lloyds Banking Group)	Tesco had built a recognisable mortgage brand, but market conditions and competition made it hard to remain attractive.
Metro Bank — partial mortgage-book sale, not a closure	Metro Bank sold part of its residential mortgage portfolio to NatWest, with affected customers transferring on 12 May 2025. Metro has not closed its mortgage business and still has an intermediary mortgage operation. (Metro Bank)	This is not a full lender exit, but it shows how some banks have been reshaping mortgage exposure.

 

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