View here for Santander’s latest announcements. Please remember that you can access Santander products, including semi-exclusive mortgages, through our direct to lender mortgage club which pays on completion. Contact us for more information. Visit Santander for Intermediaries website
Update to our residential affordability rate
On Wednesday 15 June we’re updating our residential affordability rate to reflect May’s Bank of England base rate increase.
Our affordability calculator will be updated to reflect this change. Please use this calculator to make sure you get an accurate reflection of what we can lend your clients.
Pipeline rules
Our usual pipeline rules will apply. All full mortgage applications (FMAs) already submitted on Introducer Internet by close of business on Tuesday 14 June won’t be affected by these changes. Any FMAs submitted from 6am on Wednesday 15 June, or where a material change is made to an FMA that was originally submitted before close of business on Tuesday 14 June, will be assessed using our updated lending policy.
How are we supporting the change?
We’re updating the SFI website affordability calculator.
Santander’s response to the Bank of England base rate change
On Thursday 16 June 2022, the Bank of England (BOE) base rate increased by 0.25% from 1.00% to 1.25%.
Following this decision, we can confirm the following for existing mortgage customers:
Santander tracker products will increase by 0.25% from July 2022, but customers’ payments won’t increase until August. This includes the Follow-on-Rate, which will increase by 0.25% to 4.50%.
Santander’s Standard Variable Rate (SVR) will increase by 0.25% to 5.49% from August 2022, but customers’ payments won’t increase until after 26 August.
Alliance & Leicester tracker products will increase by 0.25% from August 2022 and customers’ payments will increase from August.
Alliance & Leicester’s SVR will increase by 0.25% to 5.49% from August 2022 and customers’ payments will increase from August.
If a customer’s existing mortgage is affected, they’ll receive a letter notifying them of their new interest rate and new monthly payment a minimum of 5 days before their monthly payment changes.
All tracker rates and reversion rates on our new business and internal transfer products will increase in line with the base rate on Tuesday 21 June.
Further information
Any pipeline applications already submitted and/or offered are not affected so you do not need to do anything.