Santander has announced improved loan to income multiples (LTIs) across its mortgage range.
As part of the changes, the bank is simplifying its repayment and interest-only LTI multiples and increasing LTI multiples for loans up to and including 90% LTV for repayment mortgages.
For applicants earning a combined income less than £45,000, Santander will lend up to 4.45x income. For those earning between £45,000 and £100,000, LTIs are 5x at 90% LTV or less and 4.45x above 90% LTV.
Borrowers earning above £100,000 can now borrow 5.5x income up to 90% LTV and 4.45x above 90% LTV.
This means that up to 85% LTV, borrowers with a combined income of £100,000 or more could borrow an extra 10%.
At 85-90% LTV, borrowers earning between £45,000 and £100,000 could borrow an extra 12% and those earning £100,000 or more could borrow an extra 24%.
Customers looking to remortgage to Santander, across all LTV levels, can also access 5.5x their income.
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.”
