Santander facilitates mortgage rules so that it can give up to £ 35,000 more | Mortgages

One of the largest mortgage credit institutions of the United Kingdom has relaxed its rules and will offer some borrowers up to £ 35,000 more to finance their purchases of houses.

Santander said he adapted to the way he calculated the convenience, which means that many customers who require a mortgage would be able to borrow between £ 10,000 and £ 35,000 since Friday.

The move follows the calls of the city regulator, the Financial conduct Authority (FCA), for the lenders to look at their approach to make sure that the tests they carry out on the borrowers do not “unduly limit access to mortgages otherwise convenient”.

Under the changes of Santander, a pair of buyers for the first time he earns £ 49,500 among them can be able to borrow £ 210,352 with a fixed rate mortgage for two or three years-four £ 14,000 more than before.

A pair that moves on the housing scale and earns a total of £ 63,500 can be able to borrow £ 305,326 on a fixed rate mortgage at five years-a increase of almost £ 21,000.

Santander existing mortgage customers who wish to borrow more will potentially benefit from the changes.

In the years following the 2008 financial crisis, mortgage financiers have introduced rigorous rules on loans to ensure that people have not been granted inaccessible loans. Part of this concerned the addition of a stress test, which controls that reimbursements are accessible even if the lenders have put their mortgage rates.

The rates used for the tests have always been superior to the typical rates paid by the borrowers e Increase in the basic rate of the Bank of England In recent years they have pushed them and reduced the sums available for customers.

Santander said he reduced the rate that will stress the test up to 0.75 percentage points. Previously it was that the controlled payments were convenient at 1 percentage point above its standard variable rate of 6.75%, but reduced it between 6%and 7%.

David Morris, head of the houses of Santander Uk, said: “Helping customers to realize the dream owned by the house is a key priority for Santander, but we know that the constraints of convenience continue to bite.

“We are excited to be the first important lender to respond to the updated FCA guide, together with the introduction of a series of reduced mortgage interest rates today, carrying out our role as a responsible lender, while helping multiple customers to borrow what they need to release their domestic aspirations”.

David Hollingworth, associated director at the L&C mortgage broker, said that it was a positive move, but the bank did not “launched all the limits” and the limits on how much someone had been borrowed from someone’s income.

“This could be a push for those who try to buy and need a higher loan amount. For some it could put a purchase at hand where it had previously resembled touching distance,” he said.

“Loan to the income limits will apply anyway, so we will not see the maximum rocket for those who already have good accessibility.”