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Borrowers could potentially secure up to £35,000 more when applying for a mortgage after Santander became the first major UK lender to loosen lending rules.

This move is the first from a big bank since the Financial Conduct Authority announced regulation changes earlier this month. Santander says its change means its residential affordability rates are the lowest since 2022. The bank says this is great news because it can say 'Yes' to more mortgage applications.

Generally, banks and building societies typically lend between four and six times a single or joint applicant's salary, depending on their credit record, income, and expenditures. Santander was already offering up to 5.5 times the salary for higher earners.

What has Santander changed?

• Standard affordability rate reduced by 0.75%.
• Pound for pound remortgages on a five-year fixed affordability rates reduced by 0.75%.
• Retained and not let property affordability rate reduced by 0.75%.

Santander has also reduced its existing customer affordability rate by 1.75%, allowing new and existing customers to borrow the same amount.

How much difference will Santander's mortgage affordability changes make?

The Financial Conduct Authority and UK Government are pushing for growth and mortgage affordability is an area they are focusing on. They know it is a real issue for many borrowers keen to get on the property ladder or move home. This change may mean Santander customers can borrow more, but other lenders may also make affordability improvements. 

Santander said this meant many borrowers, depending on their earnings, could take out mortgages of between £10,000 and £35,000 more. For example, a couple earning £63,500 with two children looking to buy a £425,000 property would have previously been able to borrow up to about £284,728. Under the changes, they could borrow £305,326 — £20,598 more. This is according to figures in The Times.

At present borrowers are tested to ensure they can afford a rate about 1 percentage point above the bank’s standard variable rate of 6.75%, which is what homeowners fall into after a fixed deal ends. Santander’s stress rate will instead be reduced to about 6 to 7 per cent. Fixed mortgage rates are about 4.25% at the moment.

Do the lenders have different mortgage affordability rules?

Mortgage lenders often use different affordability calculations, meaning they offer borrowers different loan sizes. Trinity Financial's brokers search the market to help our clients secure sufficiently large mortgages at competitively priced rates.

Call Trinity Financial on 020 7267 9399 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Mortgage lenders have been improving their prices over the last month, and there are now more fixed rates closer to 4%. While most borrowers take two-year or five-year fixes, some competitively priced three-year fixes exist. 

My mortgage of the week is a new three-year fix from Halifax for Intermediaries. It is available for mortgages between £25,000 and £2 million. While mortgage rates are expected to come down and the Bank of England base rate is likely to get cheaper, there are no guarantees, especially with so much global instability. 

Halifax's 4.06% three-year fix is only marginally more expensive than the most competitively priced rates, so it seems like a good choice, especially for more risk-averse borrowers who want slightly more payment security than a two-year fix offers.

The bank has a good reputation for issuing fast mortgage offers, is flexible with its acceptance criteria, and typically offers its customers good retention rates when it's time to remortgage.

Details include:

• Residential rate - for property purchases 
• Initial rate - 4.06% - How much will it cost?
• Fixed until 30 June 2028
• Deposit - 40%
• Lender's standard variable rate - currently 7.99% 
• Arrangement fee - £999
• Early repayment charges - Yes

The APRC applicable on this loan is 7.2%. The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration. The mortgage is available on an interest-only and capital repayment. 

Demand for larger homes has driven growth in UK property prices over the past year, according to new research by Halifax.

As easing interest rates improved mortgage affordability, annual property price growth reached +3.7% in January 2025, up from just 1.0% at the start of 2024. In cash terms, Halifax says prices increased by £10,431, with the average cost now at £294,818, surpassing the previous peak in August 2022 during the pandemic-era property boom.

The analysis – based on data from the Halifax House Price Index – reveals significant variations in price growth across different property types and regions. Terraced houses lead the way with annual growth of +4.5%, reaching £235,296, while detached properties increased by +4.1% to £471,748. 

In contrast, flats saw the slowest growth at +3.2%, with an average price of £168,569. Semi-detached houses rose by +3.8%, averaging £307,685.

Aaron Strutt, product director at Trinity Financial, says: "With house prices still rising, many need more generous income multiples to secure a sufficiently large mortgage to purchase the property they want. Borrowing between four and five times single or joint income is normally possible, while some lenders offer up to six times the salary.

"Banks and building societies are keen to issue mortgages, and they do not mind if they lend against a house or flat. To access the most competitively priced mortgage rates, borrowers need a 35% or 40% deposit, although there are now much more competitively priced fixes for those with a 15% or 20% deposit."

Flats

Price growth for flats fluctuated significantly over the last year, from 1.3% in January 2024 to a peak of +4.7% in October, before easing to +3.2% at the start of 2025. 

Despite this, the average price of £168,569 remains just £1,824 below the peak recorded in August 2022. 

Regionally, the North East saw the strongest growth in flat prices, rising by +15.1% (£13,141) to £100,123, while the East Midlands experienced a slight decrease of -0.6% (-£705).

Terraced houses

Terraced homes led house price growth for much of the last year, peaking at +5.7% in October 2024. They began 2025 at +4.5%, with the average price now at £235,296, up by £10,025 over the last year. 

The North East saw the highest annual increase for terraced houses at +8.4% (£10,263), while Yorkshire and Humberside had the slowest growth at +2.7%. As with flats, the North East has seen prices for terraced houses rise the most on an annual basis, up by +8.4% (£10,263).

Semi-detached houses

Semi-detached houses recorded growth of +3.8% over the last year, increasing by £11,367 in cash terms, with the average price now at £307,685. 

Northern Ireland saw the biggest increase at +7.0% (£11,835), while Scotland had the slowest growth at +0.7%.

Detached houses 

At the top end of the size scale, detached houses saw annual growth of +4.1% (£18,704). The average price of £471,748 is above the pandemic-era peak set in September 2022 (£471,333) and just shy of the new high set in September last year (£472,984). 

Call Trinity Financial on 020 7267 9399 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Nationwide for Intermediaries has announced that it is lowering some of its fixed rate rates by up to 0.26% from Friday, 21 March, despite the base rate sticking at 4.5%.

The lender is lowering rates across its new business and existing customer moving home product ranges.

Aaron Strutt, product director at Trinity Financial, says: “Nationwide lowering its rates despite the Bank of England base rate staying at 4.5% shows how keen big lenders are to issue more mortgages and that fixes are still coming down.

These rate changes target borrowers with smaller deposits, boosting first-time buyers and the many borrowers keen to get on the property ladder this year.

Which lenders offer the most competitively priced rates?

Some lenders offering sub-4% five-year fixed rate mortgages include HSBC, Barclays and Nationwide for Intermediaries. The most competitively priced two-year fixes are priced at around 4.2%.

To access many of the lowest rates, borrowers either need to be higher earners or purchase properties with higher energy performance certificate ratings of A or B.

Do the mortgage rates change depending on the size of your deposit?

Applicants will need a 35% or 40% deposit to access the lowest rates, but the rates are not much more expensive when you have a 15% deposit. There is a jump in price for those able to put down a 5% or 10% deposit.

Call Trinity Financial on 020 7267 9399 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

If you are a higher earner and want to apply for an HSBC mortgage, it is generally worth opening an HSBC Premier Account.

HSBC aims to issue more mortgages to higher earners by incentivising them to transfer their banking with cheaper mortgage rates and potentially lower arrangement fees. The lower rates are available to borrowers with different deposit sizes.

Why would you apply to HSBC for a mortgage?

HSBC consistently offers many of the market's most competitively priced mortgage rates.

HSBC is a good mortgage lender. It offers various fixed and Bank of England base rate tracker mortgages and higher or lower arrangement fees. The lender has a minimum loan size of £10,000 and a stated maximum loan size of £5 million. 

Trinity Financial's brokers can access the bank's London-based business development managers, who help us get mortgages agreed and processed more efficiently.

Do you need to open a Premier account before applying for a mortgage?

If you qualify for a Premier account, Trinity Financial's brokers can apply an HSBC Premier rate, provided the applicant opens the account before the mortgage enters the underwriting stage. The account can be opened online.

If you apply for a mortgage and do not qualify for a premier account, you will not be able to complete it at the lower rate and will have to take a slightly more expensive product.

How much do you need to earn to qualify for HSBC Premier?

You must have an annual income of at least £100,000, and pay it into your HSBC Premier Bank Account. You will also need savings or investments of at least £100,000 with HSBC in the UK, but exclusions apply. You can also qualify as an HSBC Premier customer in another country.

What are HSBC's lowest mortgage rates? 

HSBC offers its premier customers a sub-4.10% two-year fixed rate and a sub-4% five-year fixed rate. Non-premier customers will pay slightly more. 

The lender offers Bank of England base rate tracker mortgages without early repayment charges priced from 0.19% over the current 4.5% base rate.  

HSBC announces more mortgage price reductions from 24 March 2025

HSBC for Intermediaries has introduced a selection of premier mortgage deals across several of its ranges and lower cashback for first-time buyers, homemovers and remortgage residential energy-efficient homes. 

The bank has introduced premier-only two- and five-year fixed fee-paying and fee-saver buy-to-let (BTL) products at 60%, 65%, 75% and 80% loan-to-value in its purchase, remortgage and existing customer ranges.

HSBC has lowered the cashback for first-time buyers, home movers, and remortgage residential energy-efficient home ranges. The new cashback rate was not specified, but depending on fee structure and loan-to-value tier, cashback can range from £250 to £1,600.

Call Trinity Financial on 020 7267 9399 to secure a higher earner mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

The number of companies holding buy-to-let properties in the UK has reached 401,744, a 332% increase from 92,975 in February 2016, according to Hamptons Monthly Lettings Index. This milestone reportedly makes buy-to-let companies the most common business structure in the UK, outpacing fast food takeaways and hairdressers by nearly four times.

The rise in incorporations has remained strong, with 61,517 new limited companies set up in 2024 alone, marking a 23% increase from the previous record set in 2023. This shift is largely driven by investors moving properties from personal ownership into company structures for tax efficiency. There are now approximately 680,000 buy-to-let properties held in limited companies across England and Wales, with the number increasing by 70,000 to 100,000 annually.

Aneisha Beveridge, Head of Research at Hamptons, commented: “The limited company is now the structure of choice for the next generation of investors. Current tax rules mean that most, although not all, new investors find themselves better off in a company structure than owning an investment property in their own name.”

How many lenders are offering limited company buy-to-let mortgages?

There is a long list of lenders offering limited company buy-to-let mortgages, whether big building societies or smaller specialist providers.

The Mortgage Works is one of the biggest lenders offering limited company mortgages, and the rates are normally competitively priced. Other lenders offering limited company buy-to-let include Aldermore, Capital Home Loans, Leeds for Interemedierias, Metro Bank, Precise Mortgages and West One.  

Call Trinity Financial on 020 7267 9399 to secure a limited company buy-to-let mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage