Updating post from Reddit.
Santander has reduced the affordability stress tests on its buy-to-let (BTL) mortgages.
On Standard Buy-to-Let a Pay Rate affordability test reduction from 7.31% to 7.15%
- Before, a rent of £1,000 would have got you a mortgage of £131,326.95 for basic rate taxpayers
- Now, a rent of £1,000 will get you a mortgage of £134,265.73 for basic rate taxpayers
An extra £2,938.78 in borrowing is available, however Santander do have a maximum LTV of 75%.
On 5-Year Fixed Rates & like-for-like remortgages a Pay Rate affordability test reduction from 5.31% to 5.15%
- Before, a rent of £1,000 would have got you a mortgage of £180,790.96
- Now, a rent of £1,000 will get you a mortgage of £186,407.77
An extra £5,616.81 in borrowing is available, however Santander do have a maximum LTV of 75%.
Good stuff OP thanks
What about higher rate taxpayers?
Sorry, I cut that bit off
>If you are a higher-rate taxpayer, a 5-Year Fix maximum loan would be £160,696.35 instead of £186,407.77.
Santander don't do LTD Company BTL, so unlike other lenders, Higher Rate Taxpayers can not use LTD Company to get lower rental stress tests.
Thanks
Looks like a Guido Fawkes article with that branding
Guido Finance
2.3% will make any difference?! Jog on mate.
An additional £2k on 2-Year Fixed rates and £5k on 5-Year Fixed rates for every £1,000 in rent significantly impacts deposit requirements in some regions; in others, the effect is minor but still beneficial.
It's rather good news to see this change from Santander, as it increases competition, which could make other lenders make reductions to maintain market share.