Santander restricts self-employed lending to 60% LTV

Rozi Jones
8th January 2021

Santander is limiting all new residential mortgage applications where any applicant is self-employed to 60% LTV to help manage its current pipeline cases.

All full mortgage applications submitted from 6am on Saturday 9th January will be assessed using the new self-employed lending policy.

Reiterating its self-employed evidence requirements, Santander said that it is unable to use income towards affordability if a client's business is not currently trading due to Covid-19 tier restrictions.

Where borrowers use personal bank statements for their business, Santander requires business related credits highlighted to be able to assess current trading levels.

Where SA302s are used to prove income, Santander requires the business turnover provided to help cross reference with the bank statements.

In addition to providing supporting rationale that the business bank statement supports the income declared, Santander is also asking brokers to provide supporting rationale that the income is sustainable going forward.

Where a client’s income or business has been unaffected by Covid-19, brokers need to upload a Mortgage Application Tracking System (MATS) message confirming that the business can continue to trade under any current or future lockdown restrictions in a way that allows the income declared on the application form to be sustainable.

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