A number of changes to Santander’s affordability criteria and to its LTV limits are “a step forward” for those eyeing the upper end of the market, according to one broker.
From tomorrow (April 9), Santander will be changing LTV limits for large loans, increasing the LTV from 75 per cent to 85 per cent for loans over £1mn and up to £2mn.
Additionally, for loans over £2mn and up to £3mn, the LTV will be raised from 70 per cent to 75 per cent.
To support the changes, the lender is also increasing the maximum loan size on selected residential fixed-rate products, including new builds.
Albion Financial Advice director, Dariusz Karpowicz said raising LTV limits on large loans and tweaking its affordability calculator showed a keenness to lend more freely.
Positivity was also shown by Orchard Financial Advisers managing director, Ben Perks, who said: “Santander has smashed through the ceiling of their higher loan limits.
“While many of these changes don’t help your everyday borrower, it is great to see a lender willing to tweak criteria to help some.”
However, Lawson Financial director, Michelle Lawson, described the update as a “mixed bag of policy adjustments” due to the fact that it will only help some borrowers.
“Overall, these are positive and understandable changes that will help Santander compete more in the larger loan and higher income markets, but they will only affect and help a small minority of borrowers,” she explained.
This sentiment was shared by Brooklyns Financial director, Harps Garcha, who said: “These are positive criteria changes to Santander’s criteria, especially in the £1mn plus mortgage market.
“These tweaks will not help the mass market, but they will certainly assist a number of potential homeowners, particularly in the South East.”
Meanwhile, Coreco managing director, Andrew Montlake, said: “In the battle for business in the mortgage world, it is not always all about the rate: mortgage criteria are just as important.
“Santander has made a number of interesting changes that should see them able to offer help to a larger range of clients than before, particularly in the higher loan size bracket.
“The large loan space is set to become a competitive arena for lenders going forward as quality, lower LTV lending becomes a more attractive proposition.”
tom.dunstan@ft.com
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