Clydesdale Bank has announced an important product update for advisers. Please see below for more details. Contact us for more information, alternatively, you can visit their website here.
ANNOUNCEMENTS
Why Flexible Underwriting Matters
Experienced underwriters make all the difference when a case needs a bespoke and human approach, says Richard Walker, Head of Intermediary Sales at Clydesdale Bank
Technology has transformed lending, helping lenders process applications efficiently and deliver fast decisions, but automation, without a human touch, doesn’t suit everyone.
As you know, not all cases fit neatly into standard lending criteria. Self-employed clients, borrowers with complex finances or those seeking larger loans often need a more considered view. That’s when the value of human understanding becomes clear.
Clydesdale Bank’s approach
We combine systems with experience to make the process smoother. Every application can be assessed by a skilled underwriter who takes the time to understand the story behind the figures.
They bring years of experience and a deep understanding of non-standard income structures, self-employed business accounts and complex buy-to-let cases. They know what to look for and which questions to ask. This means that instead of saying no when a case doesn’t quite fit, we can take a balanced view on individual applications.
It might be the GP who’s recently become a partner and is technically ‘newly self-employed,’ or the contractor returning to work after parental leave. On paper, their application might not tick every box, but with experience and professional judgement, it makes sense. Our underwriters’ expertise and our flexible criteria allow us to say yes to more clients.
The FCA recently highlighted the need for greater flexibility to better support exactly these borrowers, including those with variable or self-employed income and those using interest-only or part-and-part products, in its Discussion Paper DP25/2, Mortgage Rule Review: The future of the Mortgage Market
Strong partnerships with brokers
At the heart of our approach is the partnership between brokers, business development managers (BDMs) and underwriters.
As well as helping with new enquiries and criteria, our experienced BDMs can support you with technology and share insights on market trends and regulation. They also work closely with senior underwriters to understand what a good exception looks like. We want you to see your BDM as a long-term partner who can help you grow your business and identify new opportunities.
For large loan cases (over £500,000), you also have direct access to an underwriter. This open communication ensures cases can be discussed early, giving you confidence about what’s possible before an application proceeds.
Flexibility in practice
The types of cases we support are wide and varied. A recent example was an existing Clydesdale Bank mortgage customer who wanted to borrow more to fund a home extension. On paper, their outgoings looked too high: two children in private school, alongside an ambitious building project. But they could show personal savings covering the remaining two years of school fees, meaning those costs could be effectively covered.
With this evidence, strong credit and low debt, the underwriter was able to take a view to lend, supporting the client’s goal and boosting the broker’s reputation.
It’s a small example of what flexible, human underwriting can achieve, but one of many non-standard cases we see every day.
How we can help your clients
Our adaptable approach is supported by a combination of products, criteria and expertise designed to help brokers find a mortgage for more clients.
Large loans: We lend up to £10 million (to 60% LTV) and £5 million (to 75% LTV) on terms of up to 40 years, supported by underwriters who specialise in complex financial arrangements and high-value properties. For loans above £500,000, brokers benefit from direct access to an underwriter.
High LTV and LTI ratios: We can offer up to 95% LTV (to £600,000) and income multiples of 5.5 with our Newly Qualified Professional product.
Self-employed and complex income: We can assess business profits as part of affordability, rather than relying solely on salary and dividends, giving a more detailed view of true earning potential. And we understand the most complicated accounts.
Interest-only and part-and-part: We offer up to 75% interest-only, with an additional 10% on capital and interest, giving borrowers flexibility in how they structure their mortgage. We can accept a range of repayment strategies, including cash savings, investments, pension lump sums, property sales and downsizing
Buy-to-let: We lend up to 80% LTV with flexible affordability assessments, including income-based lending where rental coverage doesn’t stack up.
Foreign nationals: We’ve recently enhanced our criteria to support a wider range of borrowers, with LTVs up to 95% in some cases, and a broader list of acceptable visas.
Mainstream improvements: While we’re known for our flexible approach, brokers also value our consistency when it comes to straightforward cases. We’ve recently enhanced our core lending criteria, including improvements to credit scoring, stress rates, and maximum terms, making it easier than ever for brokers to place simple cases with confidence
What this means for brokers
For brokers, flexible underwriting is about working with a lender that listens, understands and applies sound reasoning to find solutions to your complex cases.
Our underwriters’ expertise can give you confidence, while our BDMs keep you informed and supported, creating a partnership built on trust.
The whole team’s experience, supported by sensible criteria and great communication, means we can help you do more for your clients.
Whether it’s a complex case or a straightforward one, our goal is always to find the right solution. We offer the dependability of a large, trusted financial services organisation, combined with the personalised service of a lender that values human judgement. Clydesdale Bank is the go-to choice for clients who might fall outside standard criteria, and a reliable partner for your core business, too. We’re here to help you find the right fit.
Find out more
For help with your next case, contact your Clydesdale Bank and Virgin Money BDM. For loans over £500,000, you can speak directly with one of our underwriters.