Santander is cutting the maximum LTV on its residential mortgages where any loan part is on an interest only basis to 50% on Friday 10 February.

This applies to Abbey for Intermediaries (AFI) as well.

Mortgage advisers must submit a Full Mortgage Application to AFI by midnight on Thursday 9 February to use the old policy. Any existing Abbey interest-only mortgage customers applying to move home will also be subject to the new lending policy.

Existing pipeline will be honoured under policy rules at the time the FMA was submitted. However, Santander’s new rules will apply if there is a change to the case which results in an increase in loan amount or the LTV.

At the same time, Santander is also cutting the maximum number of applicants from four to two. Its affordability calculator will be updated to reflect this change.

Any paper applications received after Monday 13 February will be rejected.

The lender is also making certain minor changes to criteria. An updated version of its lending criteria will be available on Friday.santad