The bank is also simplifying its repayment and interest-only LTI multiples.
From 12 August, applicants with a combined income of less than £45,000 will be able to borrow as much as 4.45 times income.
Borrowers earning between £45,000 and £100,000 will be able to access a loan of up to five times income, up to 90% loan to value (LTV) on a repayment basis, or 85% LTV on interest-only, including part and part repayments. An income multiple of 4.45 times income will apply above 90% LTV.
For borrowers earning £100,000 or more, they will be able to borrow up to 5.5 times income up to 90% LTV on a repayment basis or 85% LTV on interest-only. This will be capped at 4.45 times income above for borrowing 90% LTV.
Santander said this could boost borrowing by 10% for those with a combined income of £100,000 or more at 75-85% LTV, or by 12% for applicants earning between £45,000 and £100,000 at 85-90% LTV.
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Borrowers with a combined income of £100,000 or more taking a mortgage at 85-90% LTV could access an extra 24%.
David Morris, head of homes at Santander UK, said: “The recent changes to the loan to income rules mark the latest in a series of affordability improvements in what is quickly becoming the ‘year of the buyer’. We’re pleased to reflect these changes in our policies which, when coupled with our recent changes to affordability and a record number of properties coming to the market, will hopefully help more would-be buyers access the money they need to buy the home of their dreams.
“We’ll continually look at where we can enhance and improve our lending policy to help buyers right across the board.”
Coventry BS cuts rates
Coventry Building Society is reducing residential and buy-to-let (BTL) mortgage rates, which will take effect from 12 August.
Its residential mortgage rates will fall by as much as 0.14%, including a two-year fix at 65% LTV with a £999 fee, which now has a rate of 3.8%. This is available for purchase.
Meanwhile, its BTL mortgage rates have been reduced by up to 0.38%, including a five-year fix at 75% LTV with a £1,999 fee, which is priced at 4.31%. This is also available for BTL purchase.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “These rate reductions give brokers fresh opportunities to support clients at all stages. First-time buyers have more affordable options to help them get on the ladder, and those looking to move or get a new deal have more options to consider.
“Our product transfer rates are aligned with our cheapest new business rates, too, so brokers can offer existing clients the same great value as anyone coming to us for the first time. It’s a great time for brokers to engage with clients and guide them to their next deal.”
At the beginning of the month, the firm lowered all mortgage rates by up to 0.19% across residential, BTL and limited company BTL products.
