News
Santander alters resi and buy-to-let criteria
Santander has changed its residential and buy-to-let criteria around second income and affordability rates to improve affordability.
The changes come into force from today.
On the residential side, a maximum of 70 per cent secondary income can be used in affordability calculations. This is up from 65 per cent previously.
The firm said that secondary income, whilst it was “not permanent or guaranteed” is still “regular and sustainable”.
The affordability calculator will automatically work out how much income a customer can use and calculate a net monthly income figure.
The lender added that residential affordability rates have been increased following the base rate increases in February and March.
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The affordability calculator will also be updated to account for the 2023/2024 tax year changes and household expenditure figures.
Buy-to-let changes
On the buy-to-let side, its buy-to-let affordability rates have been reduced, with its standard affordability rate decreasing to 7.59 per cent from 8.25 per cent.
Its five-year fixed affordability rate will decrease to 6.09 per cent from 7.25 per cent.
Its pound-for-pound remortgage affordability rate has gone down to 6.09 per cent from 7.75 per cent.
Full mortgage applications (FMAs) submitted by 10pm on 18 April won’t be impacted by these changes.
FMAs submitted by 6am 19 April will be underwritten by its new lending policy.