Santander UK is increasing the maximum loan-to-value (LTV) available to customers remortgaging with capital raising, allowing homeowners to borrow up to 90% of their property’s value.

From 28 October, the move will enable borrowers seeking to raise additional funds when switching their mortgage to Santander to access more capital for purposes such as home improvements or increasing their stake in a shared ownership property.

Until now, remortgage customers raising additional funds were restricted to a maximum of 85% LTV. The higher ceiling will give homeowners greater financial flexibility, with borrowing subject to affordability checks and standard underwriting.

The bank said the change could unlock “thousands” more in available funds for eligible borrowers. For example, a customer remortgaging a £300,000 property could now borrow up to £270,000 compared with £255,000 under the previous limit.

Remortgages with capital raising for debt consolidation will continue to be capped at 85% LTV.

Graham Sellar, head of Santander for intermediaries, said: “There are a range of reasons customers look to increase their mortgage borrowing – whether choosing to invest in their current home, rather than entering the laborious home moving process and paying stamp duty costs, or gifting funds to help a family member get their foot on the property ladder.

“Our upcoming changes can help homeowners access more money to achieve their plans, and as a responsible lender we would encourage anyone looking to borrow more on their mortgage, for any reason, to seek independent advice to understand the implications and costs involved.”