From 19 April Santander will assess eligible buy-to-let remortgage applications, where no increase in borrowing is taking place, with a minimum of 125% rental cover at a 5% affordability rate.

This aims to prevent borrowers, who already had a buy-to-let mortgage before the new PRA buy-to-let guidelines were implemented on 1 January 2017, from being adversely affected when remortgaging.

For mortgages without capital raising, to qualify for the lower affordability assessment which uses 125% rental cover and 5% affordability rate, applications must meet all of the following criteria:

• Property must have been purchased before 1 January 2017
• Remortgage must have no increase in borrowing (adding product fees is allowed)
• No additional lending has been taken on or after the 1 January 2017

Brad Fordham, managing director, Santander for Intermediaries said: “Some existing buy-to-let customers may be adversely affected following the new borrowing guidelines which were introduced across the industry earlier this year. Borrowers who have previously demonstrated they can meet affordability requirements may now find themselves restricted when it comes to remortgaging away from their existing lender.

“Through the introduction of these transitional arrangements, we hope to better support our buy-to-let customers, helping them to secure the best product to meet their needs when they come to renegotiate their product.”