The lender will consider applications from self-employed landlords who have a maximum of seven buy-to-let properties of which no more than five can be with Santander.
Further criteria details include;
– Applicants can have a minimum of one and a maximum of 10 secured credit commitments at the time of application.
– At least one applicant must be employed or self-employed earning a minimum basic gross salary or taxable income of £50,000 a year where an applicant will have five or more buy-to-let properties on completion or five or more secured credit commitments at application.
– Applicants with four or less properties on completion or four or less secured commitments at application one applicant, employed or self-employed must earn a minimum basic gross salary or taxable income of £25,000 a year.
Brad Fordham, managing director for Santander for Intermediaries, said these changes, brought in to increase the lender’s buy-to-let market share, demonstrate its commitment to a growing buy-to-let sector.
He added: “We want to offer intermediaries and their buy-to-let clients a choice of good value products and will continue to review our buy-to-let criteria to ensure we’re offering their clients the best product for their current and future needs.”
Self-employed applicants must submit either the latest self-assessment tax calculation forms (SA302s) covering a minimum of 12 trading months or final accounts signed by a suitably qualified accountant.
The minimum purchase price is £75,000 and the maximum loan size per property of £750,000.
The maximum loan-to-value is 75% and rental cover of 125% or more calculated on an interest-only basis is required.
The buy-to-let affordability rate is 5% and applicants must already have a residential or buy-to-let mortgage. Houses in multiple occupancy are not eligible
But buy-to-let brokers think the criteria may still be too restrictive to make a big impact on the buy-to-let market.
Stuart Cunningham, director of operations at Norwich-based Commercial Trust, said: “By offering finance to self-employed applicants Santander has brought itself more in line with the rest of the marketplace.
“But many professional landlords with between five and seven properties are unlikely to be earning more than £50,000 on a self-employed basis.
“As Santander’s credit scoring is also quite high it seems it is still seeking to limit its products to the lowest-risk applicants.”
