Santander has raised its mortgage lending limits, allowing some higher-earning couples with smaller deposits to borrow up to £130,000 more overnight. This change represents a 24% increase in borrowing capacity, aiming to improve access to homeownership amid tightening market conditions.
Significant boost for higher earners
The lender increased the loan-to-income (LTI) multiple to 5.5 times income for applicants earning £100,000 or more, applicable across loan-to-value (LTV) bands up to 90%, provided borrowers have at least 10% deposit or equity. For example, a couple previously capped at borrowing around £556,500 can now access up to £687,500.
Regulatory shift easing affordability checks
This move aligns with recent guidance from the Financial Conduct Authority (FCA) and the Bank of England encouraging lenders to ease strict affordability criteria. Santander’s adjustment is notably more generous than those of many competitors, which have mostly made incremental changes to stress tests and LTI limits.
Implications for the housing market
By increasing borrowing power, Santander may enable more buyers to enter the market or afford higher-priced homes. However, experts warn this could contribute to further house price inflation if demand outpaces supply, complicating affordability challenges in certain regions.
Balancing opportunity and risk
While the eased lending rules offer clear benefits to eligible borrowers, the broader economic context—rising interest rates and inflationary pressures—remains a challenge for mortgage affordability and repayment capacity.
REFH – Newshub, 12 August 2025
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