Last week, Santander changed its buy-to-let (BTL) affordability rules to ease assesments for mortgage prisoners and take advantage of Prudential Regulation Authority’s (PRA) flexibility on certain rules. Where no extra borrowing is taking place, applicants will be assessed with a minimum of 125% rental cover at a 5% affordability rate.
The bank also plans to launch three fixed rates for first time buyers (FTBs) across a range of loan to values (LTVs); a five-year fixed rate product for purchase and remortgage and; rate reductions of up to 0.3% on existing products.
The new remortgage-only buy-to-let products include a 60% LTV, two-year fixed BTL 2.29% with no fee and a £250 cashback on completion and a 75% LTV two-year fix BTL at 2.59% with £250 cashback. The amended residential range includes a 60% LTV two-year fixed residential purchase and remortgage at 1.19% with a £999 product fee.
Miguel Sard, managing director of mortgages at Santander UK (pictured) said: “Following our announcement a couple of weeks ago about our new affordability approach for buy to let customers, we are very pleased to now introduce some market leading remortgage rates to further support this important sector of the market.
“We are also excited to be introducing a highly competitive range of new mortgages and rate reductions designed to provide additional choice and value for customers across the residential market.”
Santander 1|2|3 Current Account customers who pay their monthly Santander mortgage payment by direct debit will receive 1% cashback on maximum monthly mortgage payments of up to £1,000.