Santander for Intermediaries has improved the loan-to-income (LTI) ratios in its affordability calculation.
For applicants with a combined income of less than £45,000, the maximum income multiple is 4.45x for all LTVs across capital & interest and interest-only mortgages.
For those with an income between £45,000 and £99,999, LTI ratios are 5x income for LTVs less than 85% and 4.45% for lending above 85% LTV and on all interest-only products.
For borrowers earning over £100,000, the maximum LTI ratio is 5.50x income on LTVs less than 75%, 5.00x on lending between 75% and 85% LTV, and 4.45x income for LTVs over 85%. For interest-only mortgages, income multiples are 5.50% at 75% LTV or less and 5x for LTVs over 75%.
For remortgages without capital raising the maximum income multiple is 5.50x income across all income and LTV bands.
