The Santander mortgage borrowing increase is giving some couples access to much larger loans almost overnight. This change follows new guidelines from UK regulators aiming to help more people buy homes.
Many lenders have recently updated borrowing limits, but Santander’s move stands out in scale. Unlike others, Santander now allows some high earners with smaller deposits to borrow up to 24% more.
For instance, a couple earning £75,000 and £50,000 with an £80,000 deposit could borrow £556,500 before. Now, under the new rules, they can borrow up to £687,500 – a 24% increase. Other borrowers will see smaller increases, such as 12% or 4%, depending on income and equity.
The change results from Santander adjusting its loan-to-income ratios across a broader range of borrowers. Buyers earning £100,000 or more can now borrow 5.5 times their income at up to 90% LTV. This means they only need a 10% deposit or equity to qualify for the increased borrowing power.
In recent months, several lenders have eased mortgage “stress tests” for affordability under rising interest rates. Many banks have also increased income multiples above the traditional 4.5 times ratio.
In March, the regulator said existing rules may be blocking access to otherwise affordable mortgages. Then, in July, the Bank of England encouraged lenders to offer more high loan-to-income mortgages. Santander responded by allowing higher income-based borrowing across more loan-to-value ranges.
Aaron Strutt from Trinity Financial noted that few lenders offer such a large increase for those with small deposits. He said Santander’s 24% rise is unusually generous compared to other changes in the market.
David Morris, head of homes at Santander, called 2025 the “year of the buyer.” He believes the Santander mortgage borrowing increase will help many purchase the homes they dream of. Overall, the Santander mortgage borrowing increase reflects a positive trend for homebuyers struggling with affordability limits.
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