Virgin Money and Clydesdale to stop offering new buy-to-let mortgages

Virgin Money and Clydesdale Bank are stepping away from new buy-to-let lending, marking another notable shift in a market that is already changing fast.

Virgin Money confirmed that Clydesdale’s new buy-to-let products were withdrawn in March and will not return, while Virgin Money’s own new buy-to-let range will be withdrawn at 8pm on 28 April 2026.

Existing customers are not being forced to do anything, and current mortgage amounts, payment dates, interest rates and terms will stay the same. Product transfers will still be available for existing borrowers, and any existing offers will continue to be honoured.

For landlords and property investors, the immediate question is simple: why has this happened, and what does it mean for the wider buy-to-let market?

What has happened to Virgin Money and Clydesdale buy-to-let?

Virgin Money and Clydesdale will no longer offer new buy-to-let mortgages. Instead, brokers with new buy-to-let cases are being directed to The Mortgage Works, Nationwide’s specialist buy-to-let lender. Virgin Money said there are no changes to its residential mortgages, and existing buy-to-let borrowers can continue to access servicing and product transfer options as normal.

So this is not a case of existing landlords losing support overnight. It is a withdrawal from new buy-to-let lending, with the ongoing book still being managed.

Why have they stopped lending?

This is a strategic consolidation following Virgin Money’s integration into Nationwide. Nationwide said Virgin Money became part of the same group in October 2024, and that Virgin Money’s business transferred into Nationwide on 2 April 2026. Nationwide has long operated buy-to-let through The Mortgage Works, and its own historic disclosures state that all new buy-to-let lending has been originated under the TMW brand for many years.

That makes the move look less like a sudden retreat from the sector altogether and more like a decision to channel future buy-to-let business through the group’s established specialist lender. That is an inference, but it is strongly consistent with the public information available.

Why would you want to use The Mortgage Works?

For brokers and landlords, The Mortgage Works is not an unknown replacement. It is one of the best-known specialist buy-to-let lenders in the market and has more than 30 years’ experience supporting UK landlords. Virgin Money’s broker update highlights that TMW supports just over 300,000 landlords and has more than 700 specialist team members. The lender often offers many of the most competitively priced fixed- and tracker-rate buy-to-let mortgages. 

That matters because buy-to-let has become more specialist, not less. Landlords increasingly need lenders that understand:

• Standard buy-to-let
• Buy-to-let remortgages
• Let-to-buy
• Limited company structures
• Portfolio landlords
• HMOs

TMW’s intermediary product guide shows that it covers all of those areas, including dedicated ranges for standard buy-to-let, larger portfolios, HMOs and limited company borrowers.

So while Virgin and Clydesdale leaving the new-lending side of the market is significant, it does not mean choice has disappeared. In practice, it means more business is likely to be directed toward lenders that are already deeply embedded in specialist landlord lending.

Are The Mortgage Works’ buy-to-let rates any good?

In the current market, TMW’s range looks competitive, especially for lower-LTV and specialist borrowers, although “best” always depends on property type, loan size, fee structure and borrower profile.

As of TMW’s product guide effective from 9 April 2026, examples in its intermediary range included:

• standard buy-to-let 2-year fixed purchase/remortgage rates from 3.50% at 65% LTV with a 3% fee, and 3.60% at 75% LTV with a 3% fee
• standard buy-to-let 2-year fixed remortgage deals with free valuation and free standard legal fees from 3.60% at 65% LTV and 3.65% at 75% LTV, both with a 3% fee
• limited company buy-to-let 2-year tracker options from 4% at 75% LTV with a 3% fee

Aaron Strutt, product director at Trinity Financial, says: "Those headline rates are strong by current standards, particularly given how much buy-to-let pricing has moved around in recent weeks. But, as always, landlords should look beyond the rate alone. Product fees, stress testing, legal package, valuation support, ERCs and the borrower’s tax position can make a huge difference to the true cost. There is still a lot of competition in the buy-to-let market, especially from lenders like BM Solutions, Paragon, HSBC and Barclays."

What is happening in the buy-to-let market in general?

The buy-to-let market in 2026 is still active, but it is under pressure from several directions at once.

UK Finance expects new buy-to-let purchase lending to hold at £11 billion in 2026, the same level as 2025, and says growth is being constrained by additional taxes and regulation. At the same time, refinancing activity is expected to stay strong, with external remortgaging forecast to rise and product transfers also increasing as more borrowers come to the end of older fixed-rate deals.

That matches what many landlords are experiencing on the ground. Purchase activity is more selective, margins are tighter, and many investors are focusing on refinancing, restructuring and improving yields rather than expanding aggressively.

There are also broader pressures building. Moneyfacts says average buy-to-let fixed rates rose sharply during March 2026, product choice fell by around 1,300 deals, and landlords are also preparing for tighter regulation, including rental reform and future EPC-related spending requirements.

So the market is not disappearing, but it is becoming more professional, more specialist and more advice-led.

What should landlords take from all this?

Virgin Money and Clydesdale stepping back from new buy-to-let lending is important, but it should not be mistaken for a sign that buy-to-let is no longer financeable.

What it really shows is that the market is concentrating around lenders with specialist expertise. The Mortgage Works is likely to be a major beneficiary of that shift, and with its depth in portfolio, limited company and standard buy-to-let lending, it is well placed to absorb that business.

For landlords, the key message is this: the market is tougher, but it is still moving. Rates have been volatile, regulation is increasing, and lender appetite is becoming more selective. But there are still strong deals available, especially for borrowers who take advice early and structure their finance properly.

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change.

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