Santander UK has introduced improved affordability rates on new build properties, enabling customers buying these properties to borrow ‘thousands more’ than before.
New build homes tend to have lower running costs and Santander has taken this, plus other features of these properties, into account when making its lending calculations.
It said, by reflecting these adjustments in its calculations, it could now lend customers more.
For example, a sole borrower with an annual income of £33,000 and borrowing £170k over 35 years could borrow an additional £4,226 on a two-year fixed rate mortgage.
The change comes in the same week Nationwide made changes to its mortgage products to help people buying new build homes.
Santander said it already offers support for customers looking to buy news builds. Indeed, it allows customers to access up to 95% loan-to-value (LTV) on new build houses and flats. Plus, it has new-build mortgage offers which are valid for a standard nine months.
Its research found almost three quarters (73%) of first-time buyers and more than half (57%) next time buyers would consider buying a new build property buoyed by the government’s proposed new towns sites.
