Mortgage News
Santander sets minimum income levels on interest-only mortgages
Santander has introduced a minimum income requirement for residential borrowers requesting any part of their mortgage on interest only, set to take effect from 23 November.
Single applicants will be required to have a minimum gross income of £50,000 while joint applicants must have a combined gross income of £70,000. Income can be made up of a mixture of primary and secondary sources of income.
The criteria will not apply to existing Santander mortgage customers moving home if their interest-only balance stays the same.
The bank has reduced its income multiples for all first-time buyers and any applicant taking out a mortgage over 90% loan-to-value. The maximum income multiple is now 4.45 x income reduced from 4.49 x income.
In a statement to its brokers Santander said: “This change reflects our continued prudent approach to lending and affordability and is in line with current market conditions.”
All full mortgage applications already submitted through Introducer Internet by 9pm on 21 November will not be affected by the changes and will continue to be progressed on its existing criteria.
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Any cases submitted as a full mortgage application from 23 November, or where a material change is made to an full mortgage application submitted before 23 November, will be assessed using the new lending criteria.