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These offers are subject to availability and may be withdrawn at any time.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