Santander ups mortgage income multiples to ‘allow customers to borrow more’
Santander has increased income multiples, or loan-to-income (LTI) ratios, to as much as 5.5x income in some cases.
The lender said that the changes will allow some clients to borrow more than before.
Applicants with a combined income of less than £45,000 looking for capital and interest loans, can now receive a LTI ratio of 4.45x income across loan-to-value (LTV) tiers.
In addition, the LTI ratio for interest-only loans is 4.45x income for applicants earning less than £45,000.
Up to £99,999
For capital and interest applicants with a combined income of between £45,000 to £99,999, the LTI ratio is 5x income at 75% LTV or less or between 75% LTV and 85% LTV.
The LTI ratio for capital and interest loans over 85% LTV is 4.45x income, which is also the same for interest-only loans.
More than £100,000
For capital and interest applicants earning £100,000 or more, the LTI ratio is 5.5x income for loans at 75 per cent LTV or less or between 75% and 85% LTV.
For loans over 85%, LTV at this income bracket is 4.45x income.
On interest-only loans for those earning £100,000 or more, the LTI ratio is 5.5x income at 75% LTV or less and five times income over 75% LTV.
For remortgages without capital raising, the maximum income multiple is 5.5x income.