Revised criteria may allow clients to access higher loan amounts on new builds
Santander UK has updated its lending policy for new build homes, potentially increasing borrowing capacity for first-time buyers and home movers.
Effective from 6am today, the revised affordability criteria apply to full mortgage applications (FMAs) submitted from that point onwards. Applications submitted before 10pm on June 26 remain under the previous policy.
According to the lender, the new policy change could allow customers to borrow more when purchasing a newly built property. For example, a joint application involving two applicants with dependants, earning £45,000 and £33,000 respectively, buying a £430,000 new build home over a 30-year term, may see an increase in borrowing by £5,110 on a two-year fixed rate, or £5,671 on a five-year fixed rate, subject to loan-to-income caps.
If a material change is made to an existing application from 6am on Friday 27 June, the case will be reassessed using our new lending policy, the high street lender said.
The bank also reminded brokers that its mortgage offers for new build homes remain valid for nine months, with a nine-month completion deadline, giving borrowers more time to finalise their purchase. These offers are available through Santander’s dedicated new build product range.
The policy update comes amid continued demand for new housing stock, particularly among first-time buyers seeking greater affordability options.
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