Major Changes To Lending Criteria For Santander Large Mortgage Loans Announced
In their latest update sent to our brokers at Oportfolio Mortgages, Santander have announced some incredible changes to their mortgage lending proposition. Most notably to mortgages for people looking to secure large mortgage loans of up to £3 million. The new changes, which are due to come into effect on Tuesday the 9th of April 2024 are particularly significant to borrowers in areas such as London where house prices are generally higher and larger loans are more sought after. In this article we will go through all of the new changes being made to Santander Large Mortgage Loans.
Large Loan LTV Limits For Santander Large Mortgage Loans
The most notable changes from the new update from Santander comes in the form of revised Loan-to-Value (LTV) limits for large loans. For loans ranging from over £1 million to £2 million, Santander is increasing the LTV from 75% to 85%. Similarly, for loans exceeding £2 million and up to £3 million, the LTV is being raised from 70% to 75%. This means that borrowers looking at mortgages of up to £2 million pounds can potentially have as little as 15% deposit or equity in order to qualify for the loan. And people looking for large Santander mortgages of up to £3 million will only need 25% deposit or equity minimum.
Santander Large Mortgage Loan Product Changes
To complement the LTV adjustments announced this week, Santander is also introducing changes to its product offerings for large mortgage loans. These changes being made are:
- Increasing the maximum loan size on selected residential fixed-rate products, including new builds.
- Launching new large loan products into the new business range.
Additionally, the bank is also making changes to its fee structure and withdrawing certain products while introducing new ones to cater to varying borrower needs and preferences.
Santander Interest Only Mortgage Policy
Santander is also updating its interest-only lending policy, extending the maximum loan term to 40 years from 25 years for both new and existing customers. The maximum loan term is increasing to 40 years from 25 years for new and existing customers who are increasing the interest only amount.
- Where the repayment vehicle is sale of property, the minimum equity needed is increasing to £300,000 from £250,000. This applies to new and existing customers who are increasing the interest only amount.
- Where any part of the mortgage is on an interest only basis, the maximum LTV for the overall lending is 85%. Where there’s a combined gross income of £200,000 or more, any lending over 75% LTV must be on a capital and interest basis. For applicants with a combined gross income of less than £200,000, any lending over 50% LTV must be on a capital and interest basis.
Mortgage Expert’s Opinions
Commenting on these changes to Santander Large Mortgage Loans, Louis Mason, Oportfolio Mortgages’ Content and Communications Director, stated:
“These changes from Santander represent a significant shift in the mortgage lending landscape, particularly for those seeking large loans. The increase in LTV limits and adjustments to interest-only policies could open up new opportunities for borrowers looking to secure high-value properties or manage their finances more flexibly. Being a mortgage broker based in south west London, many of our clients need larger loans to finance their properties, so this is particularly interesting to us at Oportfolio!
However, it’s essential for our clients to carefully consider these changes and their implications. While the expanded LTV limits may offer more accessibility, borrowers must still exercise caution in managing their finances and ensuring they can comfortably afford their repayments. As always, we advise our clients to seek personalised advice from our specialist brokers before making any decisions.”
Speak To A Mortgage Broker For Large Mortgage Loans
Santander’s announcement of these changes underscores the evolving nature of the mortgage market and highlights the importance of staying informed and adaptable in navigating these developments. At Oportfolio we are specialists in large mortgage loans and our knowledge and experience means that we are always up to date with lender policy changes. Call or email our team today to arrange a fee free initial mortgage consultation. We are here to help.
