Santander has become the latest lender to ease mortgage lending rules, with some higher-earning couples able to borrow up to 24% more. The bank updated its loan-to-income policies, allowing applicants with a combined income of £100,000 or more to access 5.5 times their earnings on loans up to 90% loan-to-value. This means a couple with an £80,000 deposit and incomes of £75,000 and £50,000 could see their maximum borrowing rise from £556,500 to £687,500.
The move follows guidelines from the Bank of England and intervention by the Financial Conduct Authority (FCA), which said earlier this year that some lenders' stress tests may be unnecessarily restricting access to affordable mortgages. Santander's changes apply to all loan-to-value levels up to 90%, requiring a minimum 10% deposit or equity. The extra borrowing capacity varies: 24% in the example given, but 12% and 4% in others.
Aaron Strutt of Trinity Financial noted that while many lenders have adjusted rules, few offer such a significant increase to borrowers with smaller deposits. David Morris, Santander UK's head of homes, said 2025 is becoming 'the year of the buyer' and that the changes aim to help more people buy their dream homes. Brokers expect other lenders to follow suit as the housing market remains competitive.
