Santander introduces new buy to let mortgage criteria.
Santander has announced the introduction of a new two-tier buy-to-let affordability calculation.
In advance of the Government’s tax relief shake up, the lender is adjusting its lending criteria.
From 21 February, the affordability mortgage rate for advances of up to 60% LTV will remain at 5%. Mortgage advances above 60% LTV will be tested at 5.5%.
A spokesperson for the lender commented on the criteria change advising that it reflects Santander’s prudent approach to lending and affordability.
With the buy to let mortgage market due to experience significant change, it is expected that lenders will begin to review their rental cover calculations in a measure to ensure that affordability assessments keep pace with change.
If you want to invest in buy to let, call us at Deal Direct to discuss your mortgage options. Our fully qualified and impartial mortgage advisers can search the entire market to find you a deal at a competitive rate.
Please note that Deal Direct are not regulated to offer financial advice. To discuss the suitability of property as an investment speak to an IFA. Also note that not all buy to let deals are regulated by the FCA.
For mortgage advice and a quite call 0800 048 8828.
