Money MoT: Clydesdale's interest-only 'low start mortgage' The product, called the 'low start mortgage', gives borrowers a three-year interest-only window. After this period, repayments will be made on a capital and interest basis at the bank's standard variable rate, currently 4.95pc, for the remaining life of the mortgage. The mortgage, which offers loans from £300,000 to £1 million, will only be available through mortgage brokers and Clydesdale's private banking channel. This is a "sensible" deal for those who have a good reason to keep their repayments low for a short period, said Ray Boulger of John Charcol, the mortgage brokers. "It's good to see a lender coming back into the market with an interest-only proposition which in an enhancement from what is available now," he said. It gives people an opportunity to keep their payments low for a period - perhaps a young professional who expects a pay increase over a three-year period, or someone with a commitment like school fees for a limited time. Mr Boulger said the rates offered were "respectable but not cutting edge." "Clydesdale is offering something unique to the market, which means it doesn't have to be very competitive on rates," he said. The deal does not require a separate repayment strategy, as the mortgage converts to a repayment process at the end of the three-year period.