Santander for Intermediaries is updating its affordability assessment and introducing a new version of the accountant’s certificate from 27 September. 

As a result of the August Bank of England base rate increase, Santander for Intermediaries is changing some of its residential and buy-to-let (BTL) affordability rates.

The lender says its affordability and BTL calculators will be updated to reflect these changes.

To consider a borrower’s tax position more fully, the lender is changing how it applied rental cover depending on the applicant’s tax band.

For example, for all applicants’ income tax bands are 20% less the rental cover of 125% will remain the same. However, for those applicants whose income tax bank is higher than 20% the new rental cover will change to 145% from 150%. 

All full mortgage applications (FMAs) already submitted on Introducer Internet by close of business on 26 September won’t be affected by these changes, Santander for Intermediaries notes.

The lender also issued a reminder of the self-employed income evidence cut-off date. 

For all self-employed income evidence, the most recent year-end must not be more than 18 months before the date of the application. 

For applications submitted from 6 October, the evidence of the most recent year-end cannot be for the 2020/2021 tax year, and Santander for Intermediaries will need more up-to-date income evidence.