Santander is set to raise its loan-to-income (LTI) thresholds from tomorrow, Tuesday 12th August, allowing mortgage applicants to borrow more following changes to Government lending rules.
The revisions align with updated LTI guidance announced by the Treasury in July and will apply across purchase and remortgage applications.
Borrowers earning less than £45,000 will be able to access loans worth up to 4.45x their income across all loan-to-value (LTV) levels.
Those earning between £45,000 and under £100,000 will be able to borrow up to 5x their income for LTVs up to and including 90%, and 4.45x income for 95% LTV.
Applicants with incomes of £100,000 or more will be able to borrow up to 5.5x their income for LTVs up to and including 90%, and 4.45x income for 95% LTV.
For remortgage customers, the 5.5x income multiple will be available across all LTV levels. Santander said the changes could increase borrowing potential by thousands of pounds for some applicants.
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.”
