Residential affordability changes and new mortgage reversion rate

Residential affordability

On Sunday 21 January, we’re simplifying our affordability approach by introducing a single residential affordability rate for all LTVs. This also applies to retained properties which are not let.

Pipeline rules

All full mortgage applications (FMAs) already submitted on Introducer Internet by 9pm on Saturday 20 January won’t be affected and will continue to be progressed on our existing residential lending policy.

Any FMAs submitted from Sunday 21 January, or where a material change is made to an FMA originally submitted before 9pm on Saturday 20 January, will be assessed using the new residential policy.

Further help and support

The website affordability calculator will be updated on Sunday 21 January to reflect this change.

Santander's new mortgage reversion rate

From Tuesday 23 January, all Santander mortgage products (new business and product transfers) will automatically transfer to the new Santander Follow-on Rate (FoR) when the fixed or tracker product period ends.

What is Santander’s FoR?

  • A variable rate that tracks at 3.25% above the Bank of England base rate (currently 0.50%), giving a current rate payable of 3.75%.
  • The differential of 3.25% is guaranteed for the life of the mortgage and cannot be changed, however, the rate payable will go up and down in line with changes to the Bank of England base rate.
  • No early repayment charges and is fully portable.
  • No product fee.

All full mortgage applications submitted on Introducer Internet or product transfer requests submitted before Tuesday 23 January (whether the mortgage has completed or not), will continue to transfer to Santander’s Standard Variable Rate when the initial fixed or tracker product period ends.