VIRGIN Money and Clydesdale will no longer offer new buy-to-let mortgages in “another crushing blow to landlords”, experts warn.
Clydesdale new business buy-to-let products were withdrawn in March, and won’t be re-introduced. Virgin Money new business buy-to-let products will also be withdrawn at 8pm on 28 April, it has been announced.
It follows Nationwide’s acquisition of Virgin Money and Clydesdale – Nationwide already has a dedicated buy-to-let arm in The Mortgage Works and appears to be consolidating its business for landlords to that brand, experts said.
This comes as buy-to-let fixed mortgage rates are soaring due to unrest in the Middle East, according to the latest research from Moneyfactscompare.co.uk.
Average buy-to-let fixed rates over a two or five-year term have risen since the start of March 2026. The two-year rate is at its highest level for a year at 5.40% and the five-year rate is at its highest level for two years at 5.91%.
Borrowing costs for those who take a two-year fixed deal are now £1,100 higher, compared to the start of March 2026, based on a £250,000 loan, with a 25-year term.
Overall buy-to-let product choice has fallen sharply, by around 1,300 deals since the start of March. Choice was last below 5,000 in November 2025.
Landlords will also be preparing for the Renters’ Right Act, which comes into force this May, and they will be expected to invest up to £10,000 to reach an Energy Performance Certificate (EPC) rating of C by October 2030.
Another crushing blow to landlords
Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said it was yet another hit for landlords.
He added: “Another crushing blow to landlords. Landlords already face higher rates, eye-watering fees and now they have a reduced choice of lenders to go to.
“The more lenders in any space, the better, as competition breeds better criteria and helps a wider array of borrowers. It’s always sad to see lenders exit a market.”
Jack Tutton, Director at Fareham-based SJ Mortgages, said it was bad news for landlords.
He added: “Virgin and Clydesdale withdrawing from the buy-to-let mortgage market can only be seen as bad news for landlords. Less competition in what is already a difficult market for landlords, will only make it harder to make buy-to-let properties justifiable.
“Both lenders’ policies opened up more options to landlords compared to The Mortgage Works. With them already having a large share of the market, it is likely to mean a more expensive mortgage for people who do not meet The Mortgage Works’ lending rules.”
David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, said it’s not a good day for brokers and borrowers.
He added: “Losing a lender is never a good day for mortgage brokers. It’s not just about having fewer options on the sourcing system but the loss of distinct criteria that help us find solutions for clients who don’t always fit a standard mould, and the healthy competition that keeps lenders’ pencils sharp and innovative.
“While neither lender was a dominant force in the buy-to-let space, consolidating down to just The Mortgage Works within the group does narrow the field for clients. In a market where landlords are squeezed harder and harder, every option counts.”
Buy-to-let isn’t dying, it’s evolving
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said landlords will have limited choice with Virgin and Clydesdale pulling out of the market.
He added: “An inevitable decision when lenders merge together, with Nationwide purchasing Virgin Mortgages a while back. Both Virgin and Clydesdale had popular reputations amongst brokers and buy-to-let borrowers alike, so the withdrawal of both brands from the market will limit choices for many landlords.
“This will not be the last round of consolidation within the mortgage market, only adding to the woes of property investors.”
Martin Rayner, Director at Compton Financial Services, said it was more about “commercial streamlining” and reassured landlords that “buy-to-let isn’t dying, it’s evolving”.
He added: “This is less about lenders pulling back from buy-to-let, and more about commercial streamlining following Nationwide’s acquisition of Virgin Money and Clydesdale. Nationwide already has a dedicated buy-to-let arm in The Mortgage Works, so it makes little sense to run competing brands within the same group.
“Consolidating lending through one specialist channel is a logical step, rather than a sign of reduced appetite. That said, this does not mean there are no challenges in the buy-to-let market. Higher rates, tax changes and increased regulation are all putting pressure on landlords – but this decision is not directly driven by those factors. Buy-to-let isn’t dying, it’s evolving. There are still plenty of lenders and options available, particularly for well-structured and professionally run portfolios.”
