Santander UK has updated its affordability calculations for new build homes which should allow many buyers to borrow significantly more than under previous criteria.

The changes are designed to better reflect the typically lower running costs associated with new build properties compared to older homes.

By factoring in energy efficiency and other cost-saving attributes of new builds, Santander says customers could now be eligible to borrow several thousand pounds more, depending on their circumstances and mortgage product.

Illustrative examples provided by the lender show a joint applicant household with a combined income of £78,000 and £3,000 in credit card debt could potentially borrow over £5,000 more on both two- and five-year fixed deals.

A sole borrower earning £33,000 with £4,000 in credit card debt might see their borrowing capacity increase by more than £4,700 on a five-year fix.

These examples remain subject to Santander’s usual affordability checks and loan-to-income limits.

The updated lending criteria come as Santander continues to promote its support for customers looking to purchase new build homes, which includes offering up to 95% loan-to-value (LTV) on both houses and flats.

The bank’s new-build mortgage offers are valid for nine months, providing greater flexibility for buyers facing construction delays, and a dedicated new build support desk is available to assist both brokers and customers through the process.

Santander also accepts a range of builder incentives, including the payment of stamp duty and legal fees, even at 95% LTV – a point of difference in a market where many lenders place tighter restrictions on such contributions.

The lender’s own research highlights continued appetite for new build housing. According to Santander, 73% of first-time buyers and 57% of next-time buyers would consider purchasing a new build, encouraged in part by the Government’s proposed plans for new towns and large-scale developments.