Santander reduces BTL and resi rates by up to 20bps, relaxes criteria   


Santander will cut selected rates for new customers by up to 17 basis points and all buy-to-let products by up to 20bps tomorrow (19 April).  

The move by the high street bank comes as it also loosens its affordability criteria for residential secondary income and BTL loans on Wednesday.  

The lender says selected new business residential remortgage rates, with no fee, will be reduced by between 13bps and 17bps.  

All BTL new business rates will be cut by 20bps, plus new rates will be introduced.  

On the bank’s product transfers, selected residential rates with no fee will be reduced by between 13bps and 17bps.  

All residential lifetime tracker rates will be cut by 30bps.  

And BTL rates at 75% loan to value and under will reduce by at least 20bps, with the 60% LTV five-year fixed-rate offer coming down by 62bps to 4.37%, with a £1,749 fee, which rises by £250.  

The lender advises brokers to log on to its online mortgage transfer service in Introducer Internet to view the full choice of rates. These rates will not appear on sourcing systems.  

On the bank’s criteria changes, it says on secondary income for residential home loans a maximum of 70% secondary income — previously 65% — will be used for affordability.   

The lender regards secondary income, while not being permanent or guaranteed, as regular and sustainable.   

It adds that following the Bank of England base rate increases in February and March, it will be increasing our residential affordability rates. The firm will update its affordability calculator to take into account the 2023/2024 tax year changes and household spending figures.  

The bank’s BTL criteria changes mean that its standard affordability rate will be cut to 7.59% from 8.25%.   

Its landlord five-year fixed-rate deal affordability rate will decrease to 6.09% from 7.25%.   

And its BTL remortgage affordability rate will fall to 6.09% from 7.75%.  

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