Santander has reduced the affordability rate it applies to borrowers who own an additional property when they complete a new mortgage with the bank.
This applies from 28 February to properties that are mortgaged and already being let or to be let.
If the property is mortgaged and self-financing, the rent needs to be more than 145 per cent of the declared mortgage payment or 145 per cent of Santander’s stressed mortgage payment at the 7.75 affordability rate.
If the property is not self-financing, the bank will consider the difference between the 145 per cent figure and the rent when assessing affordability of the new mortgage.
It may consider surplus rent as secondary income if the property is already let.
The affordability rate for properties which are mortgaged and not let will remain unchanged.
Santander said the update could allow some borrowers to access a bigger loan.
Valuations available on MATS
Santander also announced that valuations will be available to view on its Mortgage Application Tracking System (MATS).
This online tool allows brokers and clients to keep up to date with the progress of a mortgage application.
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
