Santander will reduce the affordability rates on all its residential mortgages and most of its buy-to-let deals to improve borrowing capacity.
The change will come into effect from tomorrow, but Santander did not disclose what the new rates would be when asked by Mortgage Solutions.
In an announcement, the bank said its affordability calculators will be updated to reflect the changes which will allow applicants to “borrow more than before”.
Full mortgage applications submitted by 10pm today will not be affected by the changes.
A spokesperson for Santander said: “As a responsible lender, we regularly review our affordability model in line with market conditions, interest rates and other expenditure factors.
“As a result, we have been able to reduce our affordability rate slightly and from Wednesday (14 December), mortgage brokers and customers should use our online calculators which will be updated to reflect the new potential borrowing amount.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
