Santander has become the first large UK lender to reduce residential affordability rates for borrowers looking to purchase or remortgage.
As of today, rates across all residential mortgages with the lender have been reduced by up to 0.75%, the lowest levels seen since 2022.
This means that many customers applying for a residential mortgage from Santander UK can now borrow between £10,000-£35,000 more than yesterday.
The total difference that can be borrowed is dependent on a customer’s individual circumstances and subject to affordability checks and loan to income limits.
The lender says the move is in response to the FCA’s call earlier this month for lenders to improve affordability rates and design products more in line with customers’ needs, in a market where interest rates are declining.
Santander UK head of homes David Morris says: “Helping customers achieve their homeownership dream is a key priority for Santander, but we know that affordability constraints continue to bite.
“We’re thrilled to be the first major lender to respond to the updated FCA guidance, alongside introducing a range of reduced mortgage interest rates today, fulfilling our role as a responsible lender while helping more customers to borrow what they need to release their home aspirations.”
Earlier this year, Santander made three key pledges to brokers, aiming to improve the mortgage intermediary experience.
