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Santander cuts max LTI on loans over 80% LTV

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Santander has cut its maximum loan-to-income cap on residential loans of more than 80 per cent LTV.

The lender yesterday sent a note to brokers saying that the new rate would be 4.45 times income for these cases.

The previous rate was 5 times for customers borrowing between 80 and 90 per cent LTV.

First time buyers and those borrowing more than 90 per cent are already capped at 4.45 times income.

A Santander spokeswoman says: “This change reflects our continued, prudent approach to lending and affordability and is in line with current market conditions.

‘We remain committed to lending and have a range of products, with strong rates, which support everyone looking to secure a mortgage.”

L&C Mortgages associate communications director David Hollingworth says: “I think this is another lender joining the throng of those that have already put some changes in place. Maximum income multiple caps are becoming part and parcel of the market as a backstop to the initial affordability calculation.”

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