Santander eases criteria to provide larger buy-to-let remortgages

by Aaron Strutt

Apr 19 2017

Santander for Intermediaries has eased its lending policy to make it easier for landlords to remortgage and access larger loans.

With effect from April 19, Santander will assess buy-to-let remortgage applications with a better rental cover calculation providing the borrower is not capital raising. 

Better rental calculations

If you are buying a property or remortgaging to release equity, the bank applies a standard rental calculation of 145 at 5.5%. This means the maximum loan size would be £225,705 if a property generated £1,500 rent each month.

With the new policy and for straightforward remortgages, clients switching to a lower remortgage rate have access to a better rental calculation of 125 at 5%. This increases the maximum loan size to £288,000 with £1,500 monthly rental income.

Aaron Strutt, product director at Trinity Financial, says: “Santander’s mortgages are capped at £750,000 and the bank offers a range of very competitively priced fixed and tracker rates.

“At least one applicant must be employed or self-employed and earning a minimum basic income of at least £25,000 per year to qualify.”

Eligibility criteria

The bank will only consider remortgage applications without capital raising under transitional arrangements. As a result, the property must have been purchased before 1 January 2017 and no additional buy-to-let lending on or after the 1 January 2017.

There is a selection of banks and building societies offering more generous mortgages to clients providing they are looking for like-for-like remortgages.

Call Trinity Financial on 020 7016 0790 to secure a more generous buy-to-let remortgage.