Santander introduces dual affordability for BTL

Santander has announced plans to increase the affordability rate for loans up to 60% LTV from 5% to 5.5% in a bid to combat the additional 3% stamp duty on second home purchases from 1 April.

Related topics:  Mortgages
Rozi Jones
5th February 2016
santander

For loans over 60% LTV, affordability rate will remain at 5%.

A Santander spokesperson confirmed:

"From 21 February, we’re introducing a two-tiered Buy to Let affordability calculation. For loans up to and including 60% LTV, the BTL affordability rate will continue to be 5%. For loans over 60% LTV, we’ll increase from 5.0% to 5.5%. This change reflects our continued prudent approach to lending and affordability and is in line with current market conditions.

"The BTL market is undergoing significant change with the additional 3% stamp duty on second home purchases from 1 April, and the phased reduction in tax relief starting next year adding to the cost of being a landlord. As a result landlords will be reviewing their business models and lenders will also be reviewing their rental cover calculations to ensure affordability assessments keep pace with the change.

"Buy to Let continues to be a strong market and key priority for us as we look to grow our BTL business. Our competitive BTL rates combined with our quick time to offer mean that we are well placed to help customers keen to invest in property."

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