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Cracking New Affordability Approach for Buy to Let from Santander

13 April 2017

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From Wednesday 19 April, Santander will assess eligible Buy to Let (BTL) remortgage applications without capital raising using a minimum of 125% rental cover at a 5.00% affordability rate up to 75% LTV. 

This transitional arrangement supports borrowers who already had a BTL mortgage before the new PRA BTL affordability guidelines came into effect on 1 January 2017. 

Eligibility criteria (transitional) 

They’ll only consider remortgage applications without capital raising under transitional arrangements that meet the following criteria: 

  • New BTL remortgage application must not capital raise (adding product fees is allowed)
  • Property must have been purchased before 1 January 2017
  • No additional BTL lending has been taken on or after 1 January 2017

They do not accept BTL remortgage applications without capital raising that do not meet the above criteria.

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