Mortgage lending criteria
From this page you can view our residential or Buy to Let lending criteria. You can filter to view a specific category or you can use our enhanced search tool where you can search by a letter, word or statement.
Select Residential or Buy to Let
Buy to Let
The following sections have been updated:
- Interest only applications
- Where the combined gross income is less than £100,000, the maximum income multiple is 4.45 times income
- Mortgage term cannot exceed the applicant's 70th birthday
- Affordability is on a capital and interest basis. Please use the affordability calculator to determine the client's potential borrowing
- Loan to income
- Clarification of loan to income ratios
- Proof of deposit
- Confirmed the list provided, where we won't accept a gifted deposit, is not exhaustive
- New build
- Clarification of the definition of a new build property
- Valuation services and fees
- Clarification of Scottish valuation fees.
The following sections have been updated:
- 'Income multiples' renamed to 'Loan to income (income multiples)'
- Retained properties
- 'Additional property' form to be completed for customers who are remortgaging and raising money for a new property, which they may not have yet found.
- Clarification of affordability rate.
If you answer yes to any of the questions below, unfortunately we will decline the application.
- Are the customer(s) unable to provide written confirmation of all types of income, which will be used in the application?
- Is this a Buy To Let application?
- Is this a Guarantor application?
- Is this a Shared Equity mortgage not offered through the Government's Help to Buy scheme?
- Is this a Low Cost Housing/Restricted Resale Covenant application?
- Is the property being purchased by, from or connected to a Property Investment Club?
- Are all the customers unemployed?
- Are any of the customers under 18?
- Will any customer be over the age of 75 at the end of the mortgage term?
- Will an occupier who is not an applicant on the new mortgage application be paying a lump sum towards the purchase of the property?
- Will the customer or their immediate family live in less than 40% of the property either on completion of the mortgage or at a later time?
- Is the customer remortgaging an Alliance & Leicester mortgage to Santander?
- If this a remortgage application, does the customer currently not occupy the property?
- On completion of this mortgage will the applicant(s) own five or more properties that are mortgaged?
- Is this a type of property or loan that we do not lend on?
Also, has any customer on the application ever:
- had a property repossessed by a mortgage lender?
- been bankrupt or subject to an IVA?
- had a criminal conviction, unless the conviction is for a minor traffic offence, or spent under the Rehabilitation of Offenders Act 1974?
Consideration of any application is primarily based on the customer’s ability to repay the mortgage loan.
Calculation of the amount we will lend to a customer is based on assessing affordability taking account of income, regular commitments and living expenses.
The affordability calculator is available on our website.
All current credit commitments must be included when assessing affordability, irrespective of whether they are being repaid.
An application will be deemed unaffordable (and will therefore be automatically declined) where either income multiples or levels of unsecured debt are too high.
To ensure a realistic figure is used for affordability purposes, the system will automatically use 100% of primary income and a maximum of 50% of secondary income, to calculate the net monthly income figures. The table below shows the income types considered.
Primary Income is income that is permanent, monthly, reliable, sustainable and regular. Secondary Income is income that, whilst not permanent or guaranteed, is nevertheless regular and sustainable.
Please note that applications will be subject to additional policy including maximum income multiples and debt:income ratios.
|Primary income (100% of income)||Secondary income (50% of income)|
Permanent contract - basic salary
Bonus or commission where the amounts are regular and consistent (1)
|Bonus, commission or overtime paid monthly where the amounts are regular but inconsistent
Annual bonus or commission
Other bonus, commission or overtime paid less frequently than monthly
Long-term mortgage subsidies or housing allowances
Indefinite state benefits (DWP/HMRC)
1. Please refer to our evidence requirements guide for further details and requirements.
2. Where any applicant’s total gross income is above £50,000, child benefit should not be included as a source of income.
3. Universal Credit letters are unacceptable unless the child tax credit and working tax credit amounts are separately identified.
Arrears in the previous 12 months are not acceptable.
Any customer who has ever been bankrupt will be declined.
The following provides examples of the types of application that fall into our credit scores.
Low scoring applications may be declined.
|High credit score||Low credit score|
|Not over indebted||No existing mortgage|
|An established clear credit history||Little to no credit history|
|Likely to have a lower LTV||Likely to have a high LTV|
|A well conducted existing mortgage||Some adverse credit history|
|A record on the voter's roll||No record on the voter's roll|
If a Full Mortgage Application has been declined for affordability reasons, an appeal will only be considered if the customer has a substantial Santander relationship which should consist of at least one of the following:
- A Santander UK plc mortgage with no arrears in the last 12 months.
- A well-conducted Santander UK plc current account that has been operated continually within agreed limits and showing salary credits for a minimum of six months.
- A Santander UK plc savings account with a balance of at least three months' net earnings of all customers in the last 12 months.
Regular expenditure items need to be included to assess affordability. To include:
- Loans and outstanding credit card balances
- Shared Ownership rent
- Services charges
- Student loans; and
- Cost of investments to be used to repay interest only loans
We’ll consider applications where any element of employed income is paid in any of the following foreign currencies:
- US Dollar (USD)
- Euro (EUR)
- Swiss Franc (CHF)
- UAE Dirham (AED)
The sterling equivalent must be calculated and discounted by 25% to allow for currency fluctuations. This figure must be input into the £ equivalent field in Introducer Internet.
You must record in the general notes within the Regulation Section in the full mortgage application in Introducer Internet:
- Foreign currency amount.
- GBP equivalent.
- Exchange rate on the day of the calculation.
- Date of calculation.
We generally limit loan to income (LTI) to 5 times income. We apply a lower limit of 4.45 times income for:
- first time buyers
- applications above 90% LTV
- applications where any part of the mortgage is on interest only, and the combined gross income is less than £100,000.
Other LTI restrictions may apply.
Payslip deductions where the applicant confirms the deduction is discretionary may be excluded from our affordability assessment, subject to confirmation in the Introducer Internet General notes.
|Affordability assessment||Confirmation required in Introducer Internet General notes where deductions excluded in the affordability assessment||Examples|
|May be excluded||
Cannot be excluded from the affordability assessment. Examples include student loans, season ticket loans and childcare vouchers.
We do not accept applications where the customer advises they will cancel a company pension scheme to support affordability.
We may request proof of deposit, for example if a first time buyer is putting down a large deposit. We always require evidence of the deposit where it is £100,000 or more and is not coming from the simultaneous sale of a borrower’s existing property.
We accept Help to Buy: ISA as a source of deposit for first time buyers.
We can accept deposits provided by gift or loan.
We will not accept a gifted deposit if:
- provided by the vendor (unless an acceptable new build incentive from the builder/developer);
- protected by a Deed of Trust (or similar);
- the person providing it will be living in the property, but is not named on the mortgage; or
- there is a beneficial/equitable ownership/interest in the property.
The list above is not exhaustive, so there may be other instances where we will not accept a gifted deposit.
The use of a second charge could indicate the amount provided is not a gift and further clarification may be required. We do not allow a second charge on any flexible mortgage products.
Where the source of deposit is a loan, you should provide the following details in the notes section on Introducer Internet:
- Lender (explain background if not a financial institution);
- Loan terms (e.g. interest rate, payments required);
- Any security required (e.g. second charge(; and
- Confirmation that payments have been factored into affordability.
Not required unless requested specifically.
Not required unless requested specifically.
Acceptable rental income surplus evidenced on existing let properties may be used as secondary income. Please see the retained/ other properties section.
We do not accept new applications if:
- the applicant’s total secured commitments exceed £150,000 at application and they have more than four secured credit commitments at application, OR
- will own five or more mortgaged properties on completion (including the property being purchased/remortgaged).
We do not allow self-certification of income.
Maximum of two customers per application.
If the application includes a person who is going to be living in the property and they are also providing a lump sum towards the purchase, that person must be included on the application and appear on the mortgage.
If there will be a person over age 17 living in the property who is not on the mortgage, they must sign our Deed of Consent and Charge to postpone/charge to Santander any occupancy right or interest they may have in the property. This Deed is on the reverse of our Mortgage Deed (Standard Security in Scotland).
Where there are two applicants
Both primary incomes can be used together with 50% of any secondary income.
AIV is an automated way of verifying an applicant’s stated income through Credit Reference Agencies (CRAs) comparing Current Account Turnover (CATO) or information from previous verified credit applications. Where a joint application is submitted, both applicants must be AIV eligible.
This agreement is on the basis that you, the intermediary, are satisfied that the income declared is accurate and that at the time of full case submission you have supporting evidence of net income which meets our requirements. This information should be retained on file for a minimum of two years from the date of completion. We reserve the right to request this evidence.
If a case is re-submitted the AIP may result in different evidence requirements.
Maximum LTV 90%.
Help to Buy: equity loan, Right to Buy and Shared Ownership case types are not eligible for AIV.
Applications that do not meet our eligibility requirements for AIV must have income provided.
Intermediaries are required to act appropriately where an application represents a potential conflict of interest situation. Examples of this include dealing with applications in your own name(s), spouse/civil partner and direct blood relatives.
For firms where there is no independent person to process the application and validate all necessary documentation, the application will need to be put through another firm.
We will consider customers on non-permanent employment contracts.
We do not accept applications from customers with a criminal record (or where they are living with someone who has), unless the conviction is for a minor traffic offence, or is spent under the Rehabilitation of Offenders Act 1974.
Anyone aged 18 years or over at the time of application (subject to status) with three years’ address history.
We will accept applications on an Execution Only basis for High Net Worth customers and Mortgage Professionals.
For an application to be considered on an Execution Only basis the applicants must meet the following criteria:
- High Net Worth: one applicant must have an annual net income of no less than £300,000, or net assets of no less than £3,000,000. Joint incomes cannot be summed to meet the eligibility amounts.
- Mortgage Professionals: must either work or have recently worked in the home finance sector for at least a year, are CeMAP qualified (or equivalent) and understand the risks. For joint applications both applicants must be Mortgage Professionals.
Evidence of eligibility to proceed with Execution Only must be obtained from the customer. We will undertake regular monthly checks with a sample of intermediaries to check that they comply with the above criteria.
A customer who has never owned a property, whether in the UK or abroad. On joint applications all customers must meet the definition.
Maximum income multiple is 4.45 times income.
European Economic Area (EEA) Nationals and Swiss Nationals
The above citizens are treated as UK nationals.
The following countries are members of the European Economic Area (EEA).
1 Croatian nationals are subject to additional regulations for employment in the UK.
Other Foreign Nationals
We consider applications from non-EEA/non-Swiss nationals where the property is for their own use and for immediate occupation. These may be subject to full underwriting.
We do not accept applications from foreign nationals holding diplomatic immunity.
For applicants whose income is required for affordability purposes:
- Where LTV exceeds 75% they must have indefinite rights to reside/work in the UK.
Applications must be supported by the following:
- Evidence of right to remain in the UK, with no restrictions on employment, proven by:
- a Visa stamp in a currently valid passport;
- a United Kingdom Residence Permit; or
- written confirmation from the Border and Immigration Agency/Home Office
- If limited bureau data is available, three months' bank statements
- The customer should have been resident and eligible to work in the UK for a minimum of 12 months.
We do not accept guarantor applications.
A Confirmation of Verification of Identity Certificate must be completed and meet the requirements set out within the Joint Money Laundering Steering Group Guidance for the UK Financial Sector.
We reserve the right to ask for additional customer information, including identity evidence, where it is deemed necessary.
For lending over 90% LTV, the applicant will need to meet the following criteria:
- We require three months' personal bank statements for each applicant in addition to any additional income verification
- Maximum income multiple is 4.45 times income.
- No other properties can be owned on completion of the mortgage
- The method of repayment must be capital and interest
- Must meet our income evidence requirements. Please refer to our evidence requirements guide for further details.
For LTV restrictions please refer to the 'Types and purpose of loans where we lend' section.
Where any loan part is on an Interest only basis the mortgage term cannot exceed the applicant's 70th birthday.
Where no loan part is on interest only, the mortgage term cannot exceed the applicant's 75th birthday.
We do not lend above an applicant's intended retirement age and we will not accept any case where your client's selected or anticipated age of intended retirement is past their 75th birthday.
For existing Santander mortgage customers moving home who are borrowing the same or less, we may consider applications where the mortgage term currently runs past the applicant's selected retirement age. The term exceeding retirement cannot be extended any longer.
We undertake regular checks to assess the plausibility of your client's selected or anticipated age of retirement on all applications and we may request further information or evidence to support this.
It is possible to ‘port’ most existing products to a new mortgage providing it is for house purchase/home ownership but not to a property being re-mortgaged or owned mortgage-free. A customer's entitlement to port their mortgage product is always subject to the conditions for transferring the loan to a new mortgage in their Mortgage Terms and Conditions. In particular, any new mortgage application made will be subject to a full credit assessment and the customer/property must meet our lending criteria at the time of the new application. If we do not agree a new mortgage the applicant will not be able to port their mortgage product and they may then be required to pay an early repayment charge if they subsequently redeem their existing mortgage.
Where redemption of the existing mortgage and purchase of the new property is not simultaneous, providing the purchase of the new property completes within three months of the redemption date, the existing product can be ported to the new mortgage and any early repayment charge will be refunded, as long as the customer takes the previous product for the full amount to their new mortgage.
On redemption of the existing mortgage the early repayment charge is paid in full and a refund will be made on completion of the new purchase, as long as the product is ported. If the new mortgage is less than the existing mortgage, the early repayment charge refund will be a proportionate amount.
Any additional borrowing must come from the new business mortgage product range.
See also ERC waivers for existing customers moving home section.
Where a customer chooses to port their Flexible Offset mortgage to a new property the Sale and Purchase must be simultaneous. The three month early repayment charge waiver window does not apply (because there is no early repayment charge to pay).
We do not accept applications where the property is being purchased by, from or connected to a Property Investment Club.
Where 20% or more shareholding in a company is held treat your client as self-employed. Where the applicant’s shareholding in a company (or combined shareholding of all applicants’) is less than 20%, treat your client as employed. For family business employment, we require bank statements evidencing the latest three months' salary credits.
We will not accept applications from customers who have been self-employed or owned their business for less than two years. Where accounts are marked with a ‘going concern’ qualification the application will be declined.
Where accounts are marked with a negative ‘going concern’ qualification the application will be declined.
We can consider income from alphabet share ownership as income for a director of a limited company.
All mortgage applications are required to use a solicitor from our panel. To find an appropriate local solicitor please use the solicitor search facility on our website.
Applicants who cannot be traced on the voter's roll for the years they have lived at a property may be considered subject to a letter from the local authority confirming they had registered for those years.
For applicants who did not register at the address a written explanation should be obtained and submitted for consideration
|Primary income (100%)||Acceptable proof|
|Permanent contract of employment (basic salary)||
|Employment in your own family's business (if the applicants hold less than 20% shareholding in the Company)||
If the applicants hold a 20% or more shareholding in the Company please see the 'self-employed income' section.
|Short-term renewable contracts||
|Income during parental leave||
|Other primary income (100%)||Acceptable proof|
Large town allowance
Permanent shift allowance
Employer’s mortgage subsidy
|Second job – where this is ongoing and sustainable||
|Secondary income (50%)||Acceptable proof|
Overtime (less frequently than monthly)
Bonuses that are paid less frequently than monthly
Performance-related bonuses paid less frequently than monthly
Commission paid less frequently than monthly
Where more frequently received (e.g. quarterly or half-yearly)
|Discretionary mortgage subsidies and housing allowance||
Restricted term subsidies may be considered as a secondary income subject to a minimum term of five years:
|Primary income (100%)||Acceptable proof|
|Bonus, commission or overtime||
To use as primary income, amounts must be regular and consistent and not a short-term trend.
We'll use the lowest monthly payment from the last three months' payslips multiplied by 12.
If there is a significant difference in the amounts shown on the payslips and the year to date figure, please record in the 'General notes' section of Introducer Internet.
|Secondary income (50%)||Acceptable proof|
|Monthly bonus, commission or overtime||
Where amounts are regular but inconsistent.
We'll use an average from the last three months' payslips multiplied by 12.
|Annual bonus or commission||
|Bonus, commission or overtime paid less frequently than monthly e.g quarterly||
Where there are unexplained downward trends or sharp increases in the most recent year’s trading figures, please provide additional information to explain why.
|Primary income (100%)||Acceptable proof|
Employed income (salary) for Director of a limited company (where there is a 20% or more shareholding in a company the customer must be treated as self-employed)
Net profit of a sole trader/partnership (including limited liability partnerships)
Loans over 90% LTV
Sole trader/partnership (including limited liability partnerships)
Director of a limited company
We reserve the right to request accounts where necessary. These must be final accounts and signed by a suitably qualified accountant. Please refer to the Accountant’s certificate for acceptable accountant’s qualifications.
|Other primary income (100%)|
|Dividends for Directors (20% or more shareholding in a company); includes Alphabet shares|
|Employed in your own family's business||
If the applicants hold a 20% or more shareholding in the Company treat as self-employed.
|Primary income (100%)||Acceptable proof|
|Pensions and annuities (private/company) (currently receiving)||
Pension statements and annuity letters may not be handwritten or amended and must:
Pension statements (Private/Company) must:
Annuity letters must:
Please note if a pension is paid less frequently than monthly, it will only be considered as secondary income.
|Other primary income (100%)||Acceptable proof|
Working Tax Credit
Child Tax Credit
|Secondary income (50%)||Acceptable proof|
|State benefits (DWP/HMRC) confirmed as indefinite||
|Secondary income (50%)||Acceptable proof|
|Investment income (excluding rental income)||
Evidence of a regular income from this source showing a consistent or improving return:
As investment income is complex and different for every case it is advised that you speak to your dedicated contact about what evidence of the source is required.
Rental income from properties already let
Allowable annual rental income as calculated in Introducer Internet or our affordability calculator
When proof of deposit is required this can be:
- Copy of savings book or bank statement showing the full amount of the deposit.
- Equity – confirmation of the sale price and balance outstanding.
- Capital raised from another property – copy of the mortgage offer letter.
- Endowment/investment policy maturity – letter showing maturity value.
- Letter signed by the person making the gift confirming the amount and on what terms.
This list is not exhaustive, other methods may be acceptable.
|Sale of the mortgage property||Evidence required|
|Sale of the mortgaged property||
Evidence of this information must be retained on file. Please refer to our residential interest only guide for full details.
We undertake regular checks to assess the plausibility of your client’s repayment strategy and we may request further information or evidence.
|Investment Vehicle||Value based on||Evidence Required|
|Mortgage-related endowment policy or mortgage-related ISA||Mid-point projection at maturity||
|Investment portfolio: equity-based investments (shares, unit trusts, Open Ended Investment Companies (OEIC’s)), investment bond||Current cash value||
All evidence must:
- Be provided by MATS document upload when the mortgage application is submitted.
- Retained on file for a minimum of two years from the date of application. We undertake regular checks to assess the plausibility of your client’s repayment strategy and we may request further information or evidence.
Investment vehicle – acceptable proof
- Investments may be held in an ISA but this is not a requirement. Cash ISAs are not acceptable.
- Must have been held for a minimum of 12 months and cover the interest only amount.
- Must be administered by an FCA-regulated financial services firm with an ‘authorised’ or ‘EEA authorised’ status.
- All owners of the repayment vehicle must match the names shown on the application.
- The applicants must not have reduced their holding since the last statement.
We do not accept any other repayment vehicle: For example pensions, sale of other properties (including BTLs), bonuses, overpayments, cash savings (including cash ISA) or inheritance.
There is an account fee of £225, which is payable on completion of the mortgage. The fee can be deferred until the end of the mortgage.
We allow broker advice fees to be added to the loan subject to the fee not exceeding 1% of the total loan and where the loan to value including the fee is less than 75%.
Where a fee is being added to the loan this must be documented in Introducer Internet “Notes” in the following format: “The broker fee is included within the mortgage advance”.
If an early repayment charge applies to a mortgage, customers are able to make capital repayments of up to 10% of their total outstanding loan balance each calendar year without incurring a charge. The minimum capital repayment is £500. If the product fee has been added to the loan, the customer can repay this up to 14 days following completion. Repayment of the product fee will not affect a customer’s ability to repay up to 10% of the capital each calendar year, free of any early repayment charge.
The mortgage must remain with us until the product charge end date or an ERC will apply. In addition, if a benefit package is taken with the product, there is a benefit end date which may differ from the product charge end date. If the benefit end date is before the product charge end date, the mortgage must remain at the appropriate fixed/tracker rate until the product charge end date.
Should your client redeem their mortgage before the end date on the benefit package, they will need to repay the benefit (£250 cash back or £200 for remortgage legal work). The benefit end date is shown on the KFI and the Rate Bulletin. The repayment of the benefit will be in addition to any product early repayment charge which may apply.
Your client will not pay an ERC if on or before the charge end date, they:
- simultaneously with redemption take a mortgage on a new property that completes with us for the same amount and product terms as the previous mortgage.
- simultaneously with redemption, where their existing deal has six months or less to expiry, elect to take a new product with us for at least the same amount. Please refer to the 'ERC waivers for existing customers moving home' section for more information.
For variable rate tracker and fixed rate mortgages, the ERC is expressed as a percentage of the customer’s outstanding mortgage balance at the time of redemption. The level of charge differs by product type and term. The ERC percentage remains the same until the charge end date.
If an existing customer moving home does not want to port their existing deal they have the following options if they are still within their product period
- Pay their ERC in full and select a new business product
- If the customer has six months or less remaining until product expiry at the time of application for a new mortgage, 100% of the ERC will be waived as long as they borrow at least the same amount. If the new mortgage amount is less than 100% of their current balance they are eligible for a proportionate ERC waiver. See an example below of an indicative proportionate ERC waiver:
Current mortgage £100,000
New mortgage £90,000
ERC waived 90%
In the future, we may withdraw this offer.
You will need to inform your client that they must tell their solicitor to deduct the full or partial amount of ERC waiver from the redemption monies if redemption and completion are simultaneous. If completion is non-simultaneous, the customer must pay the full ERC due on redemption. As long as completion of the new mortgage is within three months of redemption, your client can then request a refund of the full or partial ERC.
See also 'portability' section.
All cashbacks together with advance monies will be telegraphically transferred to the legal adviser at the time of completion. A fee of £35 will be deducted from the loan on completion. No monies need to be collected from the customer.
Product fees are charged on some of our products. Where the fee has been added to the loan, the added fee will attract interest over the term at the product interest rate. Your client can repay the product fee up to 14 days after completion without incurring any interest on the product fee. This does not impact on the ERC overpayment facility.
If your client changes their mind after we have collected the product fee, we would not refund it unless one of the following applies:
- We decline the application for any reason prior to the offer being issued; or
- After the valuation has been completed our valuer decides that the property would be inadequate security for us; or
- Our valuer downvalues the property and your client needs to select a different product.
All our valuation fees are non-refundable. However:
- if we have not instructed the valuation, we would refund the valuation fee in full
- if we have instructed the valuation, but it has not been undertaken, we would refund the valuation fee, less the non-refundable administration fee.
We currently only offer additional loans through our branches and telephone channel.
We offer remortgage and homebuyer benefit packages on selected products. A benefit ERC will be payable if the mortgage is redeemed early. Please see the rate bulletin for further details.
All cashbacks are telegraphically transferred on completion.
We do not offer CAT mortgages.
Interest is calculated daily and charged monthly.
Payment by Direct Debit mandate is compulsory for all products. Payments can be taken on any day of the month between 1st and 28th.
- Available to existing Flexible Offset customers moving home only.
- The Flexible Offset mortgage can be ported to a new property but the sale and purchase must be simultaneous.
- No second charges allowed on the property.
- Not available for business customers, Right to Buy cases within the first five years, homebuyer scheme, Shared Ownership properties, shared equity, Buy to Let, DWP mortgage benefit customers.
- Not available in the Isle of Man.
- The loan is not used for business purposes.
- The Flexible Offset mortgage cannot be used in conjunction with any other product.
- The Flexible Offset mortgage does not have a product ERC, however a benefit ERC may apply.
- For any Flexible Offset mortgage ported on or after 25 July 2014, drawdowns from available funds may be assessed for affordability and may only be allowed on a capital and interest basis.
- All offers are subject to availability and may be withdrawn at any time.
- All customers must meet our normal lending policy.
- We reserve the right to withdraw the mortgage rate and reclaim the benefit if the property is no longer owner occupied or the customer does not comply with the conditions of their mortgage.
- If the property has been owned for less than six months, the application may be referred for investigation. This could result in delays to completion or in some instances the application being declined.
Existing Santander mortgage customers who have any part of their existing loan on an interest only basis can port their mortgage to a new property subject to our current lending criteria. You can submit these applications to us through Introducer Internet.
If the overall lending remains the same and there is no increase in any interest only loan part, the customer will need to speak to Santander directly if the new loan does not meet our current interest only lending criteria. We do not pay a procuration fee for this business.
The interest only minimum income threshold does not apply where the interest only amount will not be increasing.
- We allow interest only applications provided there is an acceptable source of funds to repay the capital at the end of the mortgage.
- Where any part of the mortgage is on interest only, and the combined gross income is less than £100,000, the maximum income multiple is 4.45 times income. Income may be a combination of primary and secondary incomes and proof of income must be evidenced.
- Where any part of the mortgage is on an interest only basis the maximum LTV for the overall lending is 75%. Any lending over 50% up to 75% LTV must be on a capital and interest basis.
- For all interest only applications, we will assess affordability on a capital and interest basis. Please use our affordability calculator to determine the client's potential borrowing.
- The maximum term for the overall loan if sale of property is the repayment vehicle is 25 years.
- Where any loan part is on an interest only basis the mortgage term cannot exceed the applicant's 70th birthday.
Interest only repayment vehicles
We accept the following repayment vehicles where any part of the mortgage is on an interest only basis:
Sale of the mortgaged property
- Minimum £150,000 equity in the property;
- For part interest only sale of property with part capital and interest, the £150,000 is calculated on the equity at the end of the mortgage term.
- For pure interest only with sale of property the £150,000 is based on the deposit/equity at application.
- Cannot be topped up by another repayment vehicle
- Includes loans on part and part
- Maximum term 25 years.
- Maximum term 35 years, or policy maturity date if sooner.
- Mortgage-related endowment and mortgage-related ISA: value based on mid-point projection at maturity. Latest annual statement from the life company (may be no more than 15 months old) is required as evidence.
- Investment portfolio (shares, unit trusts, Open Ended Investment Companies (OEIC’s) and investment bond): value based on current cash value (100%). Latest statement issued by the administering company (must not be more than 12 months old) required as evidence.
Acceptable investment vehicles:
- May be held in an ISA but this is not a requirement. Please note that cash ISAs are not acceptable
- Must have been held for a minimum of 12 months and cover the interest only amount. Must be administered by an FCA-regulated financial services firm with ‘authorised’ or ‘EEA authorised’ status
- All owners of the repayment vehicle must match the names shown on the application.
We require evidence to support the plausibility of your clients’ repayment strategy in all cases.
We do not accept any other repayment vehicle: e.g. pensions, sale of other properties (including BTLs), bonuses, overpayments, cash savings (including cash ISA) or inheritance.
We’ll consider applications where a repayment vehicle is held in a foreign currency on a case by case basis for existing Santander mortgage customers moving home borrowing the same or less only.
|95% LTV||up to £570,000|
|90% LTV||up to £570,000|
|85% LTV||up to £1,000,000|
|75% LTV||more than £1,000,000|
The maximum loan to value is also affected by the type and purpose of loan, and the property type.
The maximum LTV varies by the type and purpose of the loan and by the property type.
Type of loan
|Standard residential mortgage||
|Residential use only. Excludes remortgage.|
For loans up to and including £350,000
For loans over £350,000
|Can go over seven storeys subject to inspection. Suitability of the property must be established.|
||See New build section|
|Publicly-assisted loans||90%||Includes schemes where the Local Authority or Housing Association offer to fund the applicant's deposit as part of an incentive to move home.|
Shared Ownership Staircasing
Change of borrower
Residential use only
The maximum amount allowed for a loan part(s) where the purpose is debt consolidation is £35,000, or 35% of the total lending (whichever is lower). Where the LTV is no more than 50%, the 35% limit will not apply (but the £35,000 will apply as a maximum regardless of LTV).
|Any retained property||90%||Where the retained property is mortgaged with Santander UK plc the maximum LTV on the existing property is 75% if let; or 90% if not let.|
|Right to Buy/Acquire||100%||100% of discounted purchase price subject to a maximum of 90% of the property value. For further details please refer to the 'Right to Buy/Acquire' section.|
|Second home/ holiday homes||80%||For owner occupation.|
|Shared Ownership||90%||On share of purchase amount - if scheme provider requires the customer to obtain a Homebuyer's report this will be down to the customer to arrange their own report. Minimum share no lower than 10%.|
|Purchasing a property for occupation by the customer's immediate family (customer not resident)||80%||No tenancy agreement in place.|
The maximum term is 35 years, including for mortgages under the Help to Buy: equity loan scheme.
For pure interest only mortgages the maximum term is 25 years.
Minimum loan sizes apply to our products. Please refer to our latest rate guide for details.
The minimum loan size relates to each individual product and not the total of all the loan parts.
Five years (subject to product term).
There is a £750 buffer available on all purchase and remortgage offers excluding:
- Existing customers porting
- Flexible Offset products
- Help to Buy: equity loan scheme
- Right to Buy
- Shared Ownership
- Undervalue transactions
Please note the mortgage buffer can exceed the product LTV, but it cannot go over 90% LTV.
Where this facility is required, please ensure your client informs their solicitor.
The maximum loan size on mortgage products relates to the total borrowing required by the customer, not just the borrowing on that product.
Our mortgage offers are valid for six months from date of issue or up to the product completion deadline, whichever comes first.
We will consider an offer extension subject to the following:
- Any necessary supporting documentation is updated and resubmitted.
- We are notified of any change in circumstances.
- The case is re-decisioned and remains acceptable to Santander in line with our current mortgage lending policy.
- A new credit search and affordability assessment.
- A new product must be selected.
- An updated property valuation.
Repayment methods available are capital and interest, interest only with an acceptable repayment vehicle and sale of property with a minimum of £150,000 equity.
Prior to completion, the maximum top up available is 10% of the original loan/amount, the minimum is £1,000.
|Type of property||Conditions to be met|
|Farms||We do lend on farmhouses that are independent from the farm, providing they are not contiguous.|
|Precast Reinforced Concrete properties (PRC)||We lend on PRC homes where they have been repaired to certain standards confirmed by a structural engineer under a PRC approved licence, subject to our valuer's approval.|
|Agricultural land/ large acreage||Properties with land where agricultural restrictions do not exist must have no more than ten acres of land.|
|Contiguous land||Where contiguous land is owned or controlled by the applicant we will consider lending providing either:
We do not lend on the following types of property/loan:
- Agricultural restrictions
- Bridging loans
- Buying a property for investment
- Commonhold tenure
- Farms where the farm and accommodation are together
- Freehold flats/maisonettes
- Guarantor mortgages
- Live/work units
- Low cost housing/restricted resale covenant schemes
- Mobile homes/river boats
- Properties with ten or more acres of land
- Purchase of land
- Sale of property by a limited company to one of its directors, or a person connected to a director. A 'connected person' includes a spouse/civil partner or parent or child/step child of the director
- Shared Equity (apart from the Government's Help to Buy: equity loan scheme)
- Sheltered housing and properties with restricted age for the occupants.
Written estimates may be required for any home improvements so that the valuer can provide an after works value.
Minimum term at the start of the mortgage is 55 years and there must be at least 30 years remaining on the lease at the expiry of the mortgage term.
Applications are subject to a satisfactory valuation and in some cases where the unexpired term is less than 85 years it may be regarded as unacceptably short.
The maximum LTV on the let property if remaining mortgaged with Santander UK plc is:
- Houses - 75%
- Flats - 75%
Refer to the retained properties section for further information.
Evidence of proof of deposit must be held on your file and full details should be provided in the notes section within the full mortgage application on Introducer Internet. In some circumstances we may request evidence of deposit that you hold.
We do not accept low cost housing/restricted resale covenant scheme applications.
This relates to all new build/converted properties including affordable housing such as Shared Ownership. We define new build as any of the following:
- Property built/converted within the last 12 months based on the date of the completion certificate.
Additionally, where the new build or conversion was completed more than 12 months ago, new build policy applies where the property:
- has not been previously occupied (for converted properties that means since the conversion was completed); or
- is being sold/marketed by a builder or developer and has not been occupied as a residential property*; or
- has not been previously used for residential purposes e.g. within a development that was once used for commercial or other use.
* Properties where the builder/developer purchased from an owner under part exchange offer and is now selling are not new builds.
Builders may offer sales incentives to prospective buyers to encourage them to purchase their properties. An incentive is anything the builder gives or provides to the buyer in cash or goods.
We will accept up to 5% cashback towards the purchase price (no financial limit) and builder’s payment of the applicant's legal fees and stamp duty only. Any reasonable non-cash incentives, eg white goods, carpets, curtains etc will be ignored.
Under the terms of the Help to Buy: equity loan scheme, we will not accept any builder cash incentives.
Please note, we do not accept new build applications where any part of the applicant’s deposit will be raised from an unsecured personal loan which is subsidised by a builder or developer.
We will consider an extension to the mortgage offer subject to the conditions in the 'Offer validity' section.
Standard new build LTV limits
- House 85%
- Flat 80%
Please be aware that all applications will be subject to additional policy including maximum income multiples.
Retained properties are any other properties that the applicant will own following completion of the new mortgage. This includes mortgaged or mortgage free properties that are currently let or to be let, second homes, holiday homes and properties occupied by dependent relatives.
We will need to consider other properties in the background as part of our affordability calculation and the details are captured in Introducer Internet.
However, where the applicant is remortgaging to us and raising money for a new property, which they may or may not have found yet, please complete the 'Additional property' form.
Properties already let or to be let
A let property that’s mortgaged will be considered self-financing if the rent covers both:
- 100% of the stressed mortgage payment and the monthly running costs; and
- 125% of the stressed mortgage payment.
Our stressed mortgage payment is the higher of the actual mortgage payment or the mortgage payment using the affordability rate, which is 5% up to and including 60% or 5.5% over 60% LTV.
A let property owned mortgage free will be considered self-financing as long as the rent covers the monthly running costs.
If a property isn’t self-financing, any shortfall will automatically be included in the ‘costs in respect to retained property’ field on the affordability calculator and Introducer Internet.
We may be able to consider the rental income from a property that is currently let as additional income in our affordability assessment:
- If the property is mortgaged, we can consider as secondary income any rent in excess of 150% of the stressed mortgage payment.
- If the property is mortgage free, then we can consider as secondary income any rent less the monthly running costs of the property.
We can’t consider any of the rental income as secondary income if:
- the property is not currently let;
- the rent is received in a foreign currency.
Properties already let or to be let and mortgaged with Santander
If the applicant is taking a new residential mortgage with Santander UK plc and will have any let properties mortgaged with Santander UK plc on completion of the new mortgage, the maximum LTV for those let properties is 75%.
Properties that are not being let
Examples are second homes, holiday homes and properties occupied by a dependent relative.
We will take into account the monthly running costs of these properties, and where the property is mortgaged we’ll use the stressed mortgage payment.
Our stressed mortgage payment is the higher of the actual mortgage payment or the mortgage payment using our standard residential affordability rate.
These costs will automatically be included in the ‘costs in respect to retained property’ field on the affordability calculator and Introducer Internet.
We won’t consider the financial contributions from an occupant when assessing affordability.
- The customer must live in the property and right to buy/acquire papers are required.
- Additional lending may be considered for home improvement purposes only. This will be subject to the local authority/housing association’s unconditional postponement of their charge. If they will not provide this the application may not proceed.
For LTV limits please refer to the ‘maximum LTV - type and purpose of loan/property type’ section.
We do not offer self build mortgages.
We will only consider applications that are part of the government’s Help to Buy: equity loan scheme. The applicant must meet the eligibility rules for the Help to Buy: equity loan scheme AND our standard lending criteria. We will need to see a copy of the ‘Authority to Proceed’ document issued by the Help to Buy agent before the application can be reviewed by our underwriters.
Our Help to Buy: equity loan scheme is available on new build properties in England only (not currently available in Scotland and Wales).
We do not accept any other shared equity scheme.
For mortgages under the Help to Buy: equity loan scheme the maximum term is 35 years.
Where the customer owns less then 100% of the property, with the remaining share being owned by a third party, our LTV restrictions apply to the value of the share owned by the customer.
The Shared Ownership agreement must allow staircasing to 100% ownership.
Please note that remortgage applications where the property is currently tenanted and/or is not currently occupied by the applicant will be declined, regardless of any future intentions.
We accept transactions where the reduced purchase price is:
- 80% or more of the current market value; and
- no more than £100,000 below the current market value.
The loan to value is based on the reduced purchase price.
|Purchase price up to and including 1||England, Wales and Northern Ireland||Scotland|
|Valuation for Mortgage Purposes 2, 3|
1 Where the purchase price is a concessionary or reduced figure, for example, when purchasing a council home, the fee will be based on the valuation rather than the purchase price.
2 This includes a non-refundable administration fee of £90.
3 For Scottish purchase properties we will accept a transcription of the valuation contained in the Home Report prepared for the seller..
For properties over £2.5 million, please contact us.
Where a product is selected that includes a free standard valuation for mortgage purposes and the customer would like a survey, they will need to arrange this independently and pay for any associated costs. For help with finding a local Surveyor you can visit the RICS website.
External Inspection Valuation
An External Inspection Valuation (EIV) or Automated Valuation Model (AVM) is applicable to certain products. They are for our sole use and no fee is charged.
We reserve the right to upgrade the EIV to a full inspection, in which case the valuer will contact the customer direct. No fee is charged in these circumstances.
There is a re-inspection fee of £55 if one of our valuers has to make an additional visit to a property before we release any money we’ve retained.