Santander to tweak B2L criteria in first bid to boost lending

Santander is relaxing its buy-to-let criteria as well as launching a range of tracker products without early repayment charges, as revealed in this week’s Mortgage Strategy cover feature.

From 27 September, the lender’s maximum buy-to-let loan size will increased from £500,000 to £750,000.

Further, it will reduce its buy-to-let affordability rate from six per cent to five per cent, although its gross rental income requirement will remain at 125 per cent.

Earlier today, Mortgage Strategy reported that Santander plans to lend up to £25bn next year, up 70 per cent on the £14.6bn it lent in 2012. Today’s announcements form part of its plans to boost it gross lending figures.

The new range of ERC-free trackers are all two-year products and will be available at LTVs from 60 per cent to 90 per cent.

The range includes a 2.19 per cent product to 60 per cent LTV; a 2.29 per cent product to 70 per cent LTV; a 3.29 per cent product to to 80 per cent LTV; and a 4.49 per cent product to 90 per cent LTV. All of these products have a £495 fee and will be available to homebuyers and remortgage customers.

The new range will also include a two fee-free tracker: a 2.49 per cent product to 60 per cent LTV and a 3.99 per cent product to 85 per cent LTV.

Santander director of retail assets Phil Cliff says: “We entered the buy-to-let market at the end of 2011 and have seen strong demand from intermediaries and their clients for our range. The buy-to-let market has seen strong growth over the past couple of years and we are keen to increase our support of this market. We are therefore delighted to be announcing enhancements to the lending criteria for our buy-to-let offering.”