Drive for increased market share behind Santander’s BTL changes

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Santander-for-Intermediaries

Santander for Intermediaries (SFI) has made changes to its buy-to-let lending criteria as it seeks to increase its share of the buy-to-let market.

SFI now considers Buy to Let applications from landlords who will have:

  • A maximum of seven buy-to-let properties on completion of the new mortgage;
  • A maximum of five buy-to-let properties mortgaged with Santander on completion of the new mortgage;
  • A minimum of one and a maximum of 10 secured credit commitments at the time of application.

In addition, at least one applicant must be employed earning a minimum basic gross salary of £50,000 per annum where an applicant will have five or more buy-to-let properties on completion or five or more secured credit commitments at application. Where an applicant has four or less buy-to-let properties on completion or four or less secured credit commitments at application, the criteria remains the same with at least one applicant in employment earning a minimum basic gross salary of £25,000 p.a.

Phil Cliff, director of retail assets for Santander, said: “The buy-to-let market is continuing to see strong growth and the latest improvements to our criteria herald the next step in our journey to becoming the intermediary partner of choice, demonstrating our continued commitment to this market. We’re keen to support the non-professional landlords sector and will continue to review our buy-to-let criteria to ensure we’re offering your clients the right mortgage with features to meet their needs now and in the future.”

Other criteria:

  • Minimum purchase price of £75,000
  • Maximum loan size per property of £750,000
  • A minimum deposit of 25%t is required and rental cover of 125% or above, calculated on an interest only basis
  • The Buy to Let affordability rate is 5%
  • Applicants must already have a residential or buy-to-let mortgage
  • Houses in multiple occupancy not eligible

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