"Borrowers who have previously demonstrated they can meet affordability requirements may now find themselves restricted when it comes to remortgaging away from their existing lender. "
The lender claims this is to prevent borrowers, who already had a buy-to-let mortgage before the new PRA guidelines were implemented on 1 January 2017, from being adversely affected when remortgaging.
To qualify for the lower affordability assessment applications the property must have been purchased before 1 January 2017 with no additional lending taken out after this date, and the remortgage must have no increase in borrowing (adding product fees is allowed).
Brad Fordham, Managing Director of Santander for Intermediaries, said: “Some existing buy-to-let customers may be adversely affected following the new borrowing guidelines which were introduced across the industry earlier this year. Borrowers who have previously demonstrated they can meet affordability requirements may now find themselves restricted when it comes to remortgaging away from their existing lender.
Through the introduction of these transitional arrangements, we hope to better support our BTL customers, helping them to secure the best product to meet their needs when they come to renegotiate their product.”
