Santander has increased the minimum National Insurance threshold and updated its household expenditure figures, which go toward borrower affordability calculations.
The lender said that it was updating its residential and buy-to-let affordability rates following the latest Bank of England base rate increase in June. This took the base rate to 1.25 per cent.
Santander added that for residential applications it was increasing the minimum National Insurance threshold to £12,750, which the bank said was “in line with government changes”. This comes after National Insurance was increased to 1.25 per cent earlier this year.
The lender continued that for residential applications household expenditure figures had been updated to reflect the most recent Office for National Statistics (ONS) data.
The ONS collects average weekly household expenditure on goods and services in the UK and due to inflation, this has been rising. Consequently, as expenditure increases affordability could become more constrained.
Santander said that affordability and buy-to-let calculators would be updated to reflect changes, and this would give brokers an “accurate reflection” of what their clients could be lent.
The changes come into effect from tomorrow, and Santander said that full mortgage applications submitted from 6am tomorrow or where material change is made to an application that was submitted prior to close of business on Tuesday would be assessed on the updated policy.
Full mortgage applications submitted on Introducer Internet by the end of the day today will not be impacted by changes.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
