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Santander updates interest-only lending policy

  • 24/02/2017
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Santander updates interest-only lending policy
Santander has refreshed its interest-only mortgage policy, amending the maximum age and minimum gross income allowed.

From today, the high street bank will allow the mortgage term to go up to the oldest applicant’s 70th birthday, previously at set at 65.

In addition, the minimum gross income has been removed, which was formally £50,000 for single applicants and £70,000 for joint borrowers.

Where any loan part is taken out on an interest-only basis with Santander, standard income multiples apply, but if the combined gross income is less than £100,000, the lender will lend up to 4.45 times income.

According to Santander’s results out this week, mortgage lending at the bank fell £1.5bn in 2016 to total £24.6bn.

Earlier this month, the lender also became the first UK mortgage provider to launch a minimum procuration fee floor of £400 on loans of £25,000 and above.

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