Santander UK will extend remortgage funds for customers to up to 90% of the value of their property from Tuesday.  

This moves the high street bank’s previous limit for borrowers looking to capital raise while remortgaging from a maximum of 85% loan to value. 

The lender says additional borrowing, subject to affordability assessments, can be taken out for a range of reasons, “including to complete home improvements or to increase a customer’s proportion of a shared ownership property”. 

It gives an example of a customer remortgaging to the bank with a £300,000 property and looking for additional borrowing for home improvements: 

• Maximum borrowing on an application submitted pre-6am 28 October — £255,000 

• Maximum borrowing on an application submitted post-6am 28 October — £270,000 

Head of Santander for intermediaries Graham Sellar says: “There are a range of reasons customers look to increase their mortgage borrowing — whether choosing to invest in their current home, rather than entering the laborious home moving process and pay stamp duty costs, or gifting funds to help a family member get their foot on the property ladder.   

“Our upcoming changes can help homeowners access more money to achieve their plans, and as a responsible lender we would encourage anyone looking to borrow more on their mortgage, for any reason, to seek independent advice to understand the implications and costs involved.” 

Remortgaging with capital raising for debt consolidation purposes continues to be limited to 85% LTV.