Santander Mortgage Lending Criteria

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Santander Mortgage Lending Criteria

Mortgage Advances

Up to £1,500,000

Notes

Illustration Type = ESIS.

Mortgage is Portable, Mortgage is Flexible, Overpayments allowed.

If you move house you may be able to transfer this mortgage to another property as long as you meet the conditions set

out in the mortgage conditions booklet under 'Transferring your loan to a new mortgage'.

COMPLETION DEADLINE applies

Fast Track Options - refer to Lender for details

Family Business: 3 months bank statements showing the salary required and an accountant's letter.

We will undertake a review of sample cases (pre and post completion) where we may request evidence of income to

confirm that this matches the information supplied to us when submitted.

The customer may transfer their mortgage to another property subject to the following conditions:

These offers are subject to availability and may be withdrawn at any time.

All offers meet Lender's normal lending policy.

Lender reserves the right to withdraw the Fixed/Variable Tracker/Capped / Rate if the property is no longer owner

occupied or the customer does not comply with the conditions of their mortgage.

The mortgage must remain with the Lender until the charge end date or a charge will apply.

We accept gifted deposits provided no interest in the property is registered by a third party. Please refer to Lender's

website for full details.

Santander will arrange and pay for the cost of your first standard mortgage valuation. You must use one of our

participating panel of surveyors.

Santander’s ERCs are calculated as a percentage of the outstanding mortgage balance at the time of redemption. The

level of charge will differ by the type of product and the product term.

All borrowers are able to make overpayments of up to 10% of their total outstanding fixed rate loan balance each

calendar year without incurring an ERC.

Unlimited overpayments can be made on all tracker rate loan balances without incurring an ERC. A minimum amount

may apply. Please visit santanderforintermediaries.co.uk for more information.

This mortgage includes a facility for additional borrowing without further approval. You may borrow additional money up

to £750 to be able to complete your mortgage. Your conveyancer will tell you that additional money is required and

request your written agreement to this.

Alternatively, you should confirm this in writing to your conveyancer so that they may request it on your behalf. This

would increase the total amount borrowed. Your monthly payment would increase based on the product rate in section 4

charged on the additional money. The same early repayment charge would apply as section 10 on the additional amount

borrowed. This will be in addition to the early repayment charge payable on the money already borrowed. All money

borrowed will need to be paid back in full by the end of the mortgage term. The total loan must not be above 90% LTV. If

you wish to use this feature please contact Santander for a revised KFI.

THIS WILL INCREASE THE AMOUNT OF BORROWING SECURED ON YOUR HOME.

For interest-only applications the maximum LTV is 50%, however we can consider part and part applications up to 75%

LTV provided the interest-only amount is not greater than 50% and the remainder is on a capital and interest basis.

For part interest only sale of property with part capital and interest, the minimum equity buffer of £250,000 will be

calculated on the equity at the end of the mortgage term.

For pure interest only with sale of property the £250,000 will be based on the deposit/equity at application.

Capital Rest Period : Daily

Repayment Types

Repayment Yes

Endowment refer

PEP refer

Pension refer

Interest only (no RV) no

With Profits refer

Unit Linked refer

ISA refer

Split Repayment refer

Fees

Arrangement : Varies

Booking : £varies

Early Repayment Charges

Varies

Higher Lending

None

Valuation

Basic:

Free

Where a product offers a free valuation incentive, this incentive is specifically for the provision of a Valuation for

Mortgage Purposes only. If the applicant requires any other valuation type, no incentive is available. Please refer to

lender for further details if required.

The Booking Fee can be added to the loan.

Valuation Solution - All Valuation Solution customers will receive a free Valuation for Mortgage Purposes.

The Mortgage Account Fee can be paid on completion or deferred until the end of the mortgage.

The arrangement / booking fees are not refundable.

There is a Reinspection of £70 if one of the Lenders surveyors has to make an additional visit to a property before the

lender releases any retained funds.

Borrowers to pay by direct debit.

Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you

wish to borrow. Added fees will not be included in this calculation.

Lenders Conveyancing Fee - £126.00 Payable on completion. A non-refundable legal fee must be paid to your

conveyancer before the mortgage starts. The amount shown here is an estimate and covers the work carried out by the

conveyancer for Santander for looking into the legal title.

Funds Transfer Fee - £35.00 Payable on completion.

Account Fee - £225.00 Payable on redemption. A Mortgage Account Fee for the provision and general administration of

your mortgage. This fee can be paid on completion or deferred until the end of your mortgage. If you defer the payment,

this fee will not increase

Acceptable Property Types

Freehold Flat No

Purpose Built Flat Yes

Converted Flat Yes

Flat Over Shop Refer

Maisonette Yes

Studio Flat Yes

Flying Freehold Refer

Thatched Yes

Timber Framed Refer

Concrete Refer

Agricultural Tie No

Flat Over 4 Storeys Refer

Listed Building Yes

Right to Buy

Max Discount% 100

Max Market Value% 90

New Build acceptable.

Please contact Lender for unusual or non-standard construction.

Leasehold properties must have 55 years minimum in England & Wales or 99 years minimum in Northern Ireland. There

must be 30 years remaining at the expiry of the mortgage term.

We ONLY accepts Builder Deposits and DO NOT accept Vendor Deposits.

New Builds defined where construction completed within the last 12 months or:

- where property not previously occupied (for converted properties - that is since the conversion has been undertaken);

or

- where property being sold/marketed by the builder or developer; or

- where the property is within a development that was once used for commercial or other use, i.e. not previously used for

residential purposes

- Product specific LTVs apply

- 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% cash back towards the

purchase price (no financial limit) and builder's payment of legal fees and stamp duty only. Any reasonable non-cash

incentives, e.g. white goods, carpets, curtains etc. will be ignored.

Maximum LTV for New Build flats is 80% and 85% for houses.

For residential Non New Build flats, where the LTV is over 90% we can now lend up to £380,000. Loans over £380,000

may now be considered up to 90% LTV.

Flats above the 6th storey subject to survey. Suitability of the property must be established.

Second Homes/Holiday Homes for owner occupation only max LTV 80%.

Property occupied by a dependant relative maximum 80% LTV.

Remortgage of Second Home - If property is currently occupied or to be occupied by a dependant relative remortgage is

not permitted.

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements

Bank Statements No

At Least 3 Months Pay Slips No

P60 No

Proof Of Residency No

Life Policy To Be Assigned No

Previous Lender References No

Insurance

Buildings Conditional

Conditions

Min Loan £6,000

Max Loan £1,500,000

Max Portfolio of BTL Loans none

Min Age 18 years

Max Age 75 years

Min Term 5 years

Max Term 40 years

For interest-only applications the maximum LTV is 50%, however we can consider part and part applications up to 75%

LTV provided the interest-only amount is not greater than 50% and the remainder is on a capital and interest basis.

3 years address history required.

Maximum number of applicants is 2.

Maximum age limit of 75 years at the end of mortgage term

Where commission, overtime or bonuses are to be included, a cumulative Year to Date figure must be available on the

payslip, or you must provide the latest P60

For large loans, payslips will often not provide sufficient information, for example where bonuses form a large proportion

of income, where bonuses are not paid wholly in cash or where income is derived from more than one source. If this is

the case submit available evidence of income.

Family Business: 3 months bank statements showing the salary required and an accountant's letter.

Lender reserves the right to ask for additional information if necessary to approve an application.

Full Status Employed applicants latest monthly payslip required.

Self-employed applicants less than 90% LTV must provide latest 2 years signed accounts or self-assessment and tax

calculation forms or an accountant’s letter.

Director of a limited company:

Three years’ SA302s plus a Tax Year Overview for each corresponding tax year and signed accounts providing three

years’ trading figures, also an accountant’s certificate to assess the performance of the business and income for all

limited company director applications below 90% LTV.

Arrears of more than 1 month in the previous 12 months are not acceptable

Where there are two applicants both guaranteed incomes can be used together with 65% of any other regular income.

Self employed

If 20% or more shareholding in a company treat the applicant as Self-employed. For family business employment, we

require

three months’ bank statements showing the salary and an Accountant’s letter.

We will not accept applications from customers who have been self-employed or owned their business for less than two

years.

Maximum LTV on all new residential applications where any applicant is self-employed is 75% LTV.

Minimum term is 5 years unless the product term exceeds this.

We do not accept applications from customers with five or more existing secured commitments and a total balance

exceeding £150,000.

Let to Buy

The maximum LTV on the let property if remaining mortgaged with Santander UK plc is:

Houses - 75%

Flats - 75%

We also require the following evidence:

Rental Income Calculator output

Proof of deposit

The maximum number of properties the applicant can own is five, including the property being purchased / remortgaged.

Santander will now accept applications from mortgage prisoners.

Clients letter from FCA third party administrator must be included, evidencing they have been identified as a mortgage

prisoner. Refer to lender website for further details.

EEA/Swiss citizens (excluding Republic of Ireland)

For residential mortgage applications over 75% LTV where we use their income for affordability purposes, EEA/Swiss

citizens (excluding Rep. of Ireland) will need to evidence their permanent right to reside in the UK. This can be proof of

their settled or pre-settled status as part of the EU Settlement Scheme or other acceptable evidence.

This will also apply to Buy to Let (BTL) applications where their income is required to meet the minimum £25,000 for

eligibility purposes.

Country of residence

All residential and BTL applicants must be UK resident. Where applicants are not UK resident, we’ll only consider

applications for new lending (including existing Santander mortgage customers moving home) in certain scenarios.

Foreign Citizens Refer

Ex-Patriates Not Accepted

Income

Based on Income > 0

Min months in current position none

Min months in continuous service none

Min no. of years accounts 2

Average years taken to calculate income 2

Will consider declining profit Yes

Outgoings

All mortgage applications are assessed on affordability using the affordability calculator, and are subject to additional

policy including maximum income multiples which are:

Combined income for all applicants less than £45,000 - 4.45x (under or over 75% LTV)

Combined income for all applicants £45,000 to £99,999 - 5.00x for 75% LTV or less, or 4.45% for over 75% LTV

Combined income £100,000 or more - 5.50x 75% LTV or less. 4.45x for over 75% LTV.

For remortgaging without capital raising the maximum income multiple is 5.50x income, regardless of the income bands

in the table above.

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 the existing property is being retained and let out, please refer to lender for policy

Lender will consider applicants on non-permanent employment contracts. Income will be treated as guaranteed, subject

to evidence of the following:

Regular monthly income

Continuous employment for the last 12 months

Confirmation from employer of long term employment arrangement, or

Confirmation from reputable agency of secure further positions

Other Regular Income types considered:

Carers Allowance

Child Tax Credits and Child Benefit.* Where you are using Child Benefit and/or Child Tax Credit as Other Guaranteed

income, you need to ensure that the mortgage will remain affordable when the benefits end. You must record this fact in

the Notes section on Introducer Internet.

Where there are two applicants

Both guaranteed incomes can be used together with 65% of any other regular income.

Online payslips are acceptable with a copy of the latest bank statement showing the salary credit.

Accounts marked with 'going concern' are not acceptable

Mortgages into retirement - please refer to lender

With regards 'Guaranteed/Regular/Irregular' income, please refer to the Santander for Intermediaries Lending Guide for

confirmation of acceptable income types and amounts.

All new residential applications where any part of the loan is on interest only will now need a minimum gross income:

- Single applicants: minimum gross income of £50,000.

- Joint applicants: combined minimum gross income of £70,000.

Gross income can be made up of a combination of primary and secondary incomes.

The new criteria will not apply to existing Santander mortgage customers moving home if their interest only amount stays

the same.

All new business residential self-employed applications are limited to 75% LTV.

Hire Purchase Taken into account

Personal Loans Taken into account

Overdraft Taken into account

Credit/Store Cards Taken into account

Child Maintenance Taken into account

Child Education Taken into account

Extra Income:-

Other Income - Guaranteed Add 100% to income before multiply

Other Income - Regular Add 100% to income before multiply

Other Income - Irregular Add 50% to income before multiply

Investment Income Add 50% to income before multiply

Mortgage Subsidy Add 50% to income before multiply

Large Town Allowance Add 100% to income before multiply

Maintenance Payments Add 50% to income before multiply

Non Contributory Pension No

Car Allowance Add 100% to income before multiply

Adverse Credit

CCJs : Refer to lender

Defaults : Refer to lender

Arrears : Refer to lender

Bankrupt : Not Acceptable

Current IVA : Not Acceptable

Repossession : Refer to lender

Refer all adverse credit to Lender for initial assessment.

Any applicant who has ever been bankrupt will be declined. If there is a Notice of Correction on the bureau data the

case will be referred.