Mortgage News
Santander updates affordability criteria
Santander is changing residential and buy to let affordability rates following the Bank of England base rate increase in August.
The lender’s calculators will reflect these changes from tomorrow (Tuesday 27 September).
At the same time, Santander is changing rental cover in relation to applicants’ tax bands.
All applicants whose income tax band is 20 per cent or less will need to have rental cover of 125 per cent, whereas previously it was at least one applicant.
And any applicant’s who has a tax band higher than 20 per cent will need rental cover of 145 per cent down from 150 per cent.
Episode 4: New Build: Powered by Partnership podcast from Newcastle for Intermediaries
Sponsored by Newcastle for Intermediaries
The lender is also introducing a new version of the accountant’s certificate but will continue to accept the old certificate on applications submitted before 27 October.
Santander also reminded that any applications submitted after 6 October will not be able to use 2020/2021 as the most recent tax year as it’s can’t be more than 18 months before the date of the application.