The lender is also launching a new range of two year tracker products, all ERC-free.
The enhancements include:
- the buy-to-let affordability rate is being moved from six per cent to five per cent and the minimum gross rental income requirement from the property continues to be 125% of the mortgage payment at the buy-to-let affordability rate.
- the maximum loan size per property is to increase from £500,000 to £750,000, with effect from Friday 27 September
Phil Cliff, Director of Retail Assets for Santander for Intermediaries, said:
“We entered the buy-to-let market at the end of 2011 and have seen strong demand from intermediaries and their clients for our range. The buy-to-let market has seen strong growth over the past couple of years and we are keen to increase our support of this market. We are therefore delighted to be announcing enhancements to the lending criteria for our buy-to-let offering.”
SFI is also launching a range of ERC-free 2 year trackers, available up to 90 per cent LTV. This now means that all standard residential tracker mortgages, including the Flexible Offset and Lifetime Tracker products, are ERC-free.
The new ERC-free tracker products range from 2.19% to 3.99% dependent on LTV, which range from 60% to 85%. All new trackers carry a £495 fee and are available to homebuyers and remortgagers.
Phil continued:
“As one of the UK’s leading lenders, we want to give your clients the freedom to choose a mortgage that has features to meet their needs now and in the future. Extending our ERC-free proposition to our 2 year tracker range reinforces our new ERC-free product range, giving customers the flexibility to switch to another mortgage product more suited to their needs, when the time is right for them. And in addition to a great mortgage rate, all 1|2|3 Current Account customers benefit from 1% cashback on their Santander direct debit mortgage payments too – whatever Santander mortgage they have.”