Santander for intermediaries will tighten its interest cover ratio calculations for landlords, while loosening other buy-to-let and residential lending policies tomorrow (30 August).  

The high street bank’s broker-only arm says its interest cover ratio calculations for landlords with a higher tax band will lift to 140% from 145%.  

The lender adds that its other buy-to-let criteria changes cover:  

BTL affordability rates  

• Standard affordability rates rise to 8.52% from 7.59%  
• Five-year fixed affordability rates rise to 7.02% from 6.09%  
• Remortgage affordability rates rise to 7.02% from 6.09%  

For residential borrowers, the business says following the Bank of England base rate increases in July and August, it will lift affordability rates for these customers.   

It advises intermediaries to use its website’s affordability calculator “to get an accurate reflection of what we can lend your clients”.  

The firm says all full mortgage applications submitted by 10pm on 29 August will not be affected by these changes.  

Any full mortgage applications submitted from 6am on 30 August will be assessed using its new lending policy.  

It adds that if “a material change” is made to an existing application from 6am on 30 August, “the case will be reassessed using our new lending policy”.