Santander for Intermediaries (SFI) has made changes to its lending criteria for buy-to-let applications.
The lender is also launching a new range of two year tracker products, all ERC-free.
Changes include:
- The buy-to-let affordability rate is being moved from 6% to 5% and the minimum gross rental income requirement from the property continues to be 125% of the mortgage payment at the buy-to-let affordability rate.
- The maximum loan size per property is to increase from £500,000 to £750,000, with effect from Friday 27 September
Phil Cliff, director of retail assets for Santander for Intermediaries, said: “We entered the buy-to-let market at the end of 2011 and have seen strong demand from intermediaries and their clients for our range. The buy-to-let market has seen strong growth over the past couple of years and we are keen to increase our support of this market. We are therefore delighted to be announcing enhancements to the lending criteria for our buy-to-let offering.”
The range of purchase and remortgage buy-to-let deals is available exclusively through the intermediary market.
- Borrowers must be aged between 21 and 70, and where there is more than one borrower, at least one must be employed, and earning over £25,000 basic p.a.
- Minimum purchase price of £75,000
- A minimum deposit of 25% is required and rental cover of 125% or above, calculated on an interest only basis
- Applicants must already have a residential or buy-to-let mortgage
- Houses in multiple occupancy not eligible
SFI is also launching a range of ERC-free 2 year trackers, available up to 90% LTV. This now means that all standard residential tracker mortgages, including the Flexible Offset and Lifetime Tracker products, are ERC-free.
The new ERC-free tracker products are:
- ERC-free 2 year tracker with a rate of 2.19% and £495 fee, available up to 60% LTV to homebuyers and remortgagers
- ERC-free 2 year tracker with a rate of 2.29% and £495 fee, available up to 70% LTV to homebuyers and remortgagers
- ERC-free 2 year tracker with a rate of 3.29% and £495 fee, available up to 80% LTV to homebuyers and remortgagers
- ERC-free 2 year tracker with a rate of 3.69% and £495 fee, available up to 85% LTV to homebuyers and remortgagers
- ERC-free 2 year tracker with a rate of 4.49% and £495 fee, available up to 90% LTV to homebuyers and remortgagers
- ERC-free 2 year tracker with a rate of 2.24% and £495 fee, available up to 70% LTV to existing customers moving home
- ERC-free 2 year tracker with a rate of 2.49% and no booking fee, available up to 60% LTV to homebuyers and remortgagers
- ERC-free 2 year tracker with a rate of 3.99% and no booking fee, available up to 85% LTV to homebuyers and remortgagers
Cliff added: “As one of the UK’s leading lenders, we want to give your clients the freedom to choose a mortgage that has features to meet their needs now and in the future. Extending our ERC-free proposition to our 2 year tracker range reinforces our new ERC-free product range, giving customers the flexibility to switch to another mortgage product more suited to their needs, when the time is right for them.
“And in addition to a great mortgage rate, all 1|2|3 Current Account customers benefit from 1% cashback on their Santander direct debit mortgage payments too – whatever Santander mortgage they have.”