Santander UK has announced improvements to its Loan to Income thresholds from 12 August, enabling borrowers to potentially access thousands more when applying for a mortgage.
The updates, which come in response to the amended loan to income rules announced by the Treasury in July 2025, will mean that customers earning:
- less than £45,000 can access 4.45x their income across all LTV levels
- between £45,000 and less than £100,000 can access 5x their income on all LTV levels up to and including 90%, and 4.45x on 95% LTV
- £100,000 or more can access 5.5x their income on all LTV levels to and including 90%, and 4.45x on 95% LTV1
Customers looking to remortgage to Santander, across all LTV levels, can also access 5.5x their income.
As a result of the changes, Santander calculates that customers will potentially be able to access thousands more, for example:
Example 1 – Joint applicants – Capital and Interest loan, 25-year term
| Equity/Deposit | Dependants | Income | Borrowing available pre 12 Aug* | Borrowing available from 12 Aug* |
| £80,000 | 2 | App 1 = £75,000App 2 = £50,000 | £556,500 | £687,500 |
Example 2 – Single applicants – Capital and Interest loan, 25-year term
| Equity/Deposit | Dependants | Income | Borrowing available pre 12 Aug* | Borrowing available from 12 Aug* |
| £30,000 | 0 | App 1 = £75,000 | £267,000 | £300,000 |
Example 3 – Remortgage, no additional borrowing – Capital and Interest loan, 23-year term
| Equity/Deposit | Dependants | Income | Borrowing available pre 12 Aug* | Borrowing available from 12 Aug* |
| £30,000 | 1 | App 1 = £40,000App 2 = £35,000 | £391,000 | £408,000 |
– The above are illustrative examples only. The actual borrowing available will depend on a variety of affordability factors, including LTV limits, and a customer’s individual outgoings.
David Morris, Head of Homes at Santander UK, said: “The recent changes to the loan to income rules mark the latest in a series of affordability improvements in what is quickly becoming the “year of the buyer”. We’re pleased to reflect these changes in our policies which, when coupled with our recent changes to affordability and a record number of properties coming to the market, will hopefully help more would-be buyers access the money they need to buy the home of their dreams.
We’ll continually look at where we can enhance and improve our lending policy to help buyers right across the board.”
