Santander updates new build affordability calculations – with customers able to borrow thousands more
27 June 2025
Santander UK has today announced that it has introduced improved affordability rates on new build properties which will allow customers, purchasing a new build home, to borrow thousands more than before.
The updated calculations consider features particular to owning new build properties, including their lower running costs when compared to the purchase of an older property. By reflecting these adjustments in its calculations, Santander can now lend customers more.
Illustrative examples:
|
Borrower type |
Income |
Property purchase price |
Mortgage length |
Loan repayment (per month) |
Outstanding credit card balance |
Other expenses (inc. nursery fees) |
Extra amount available on a two-year fixed* |
Extra amount available on a five-year fixed* |
|
Joint borrower |
£45,000 and £33,000 |
£430,000 |
30 years |
£780 |
£3,000 |
£500 |
£5,110 |
£5,671 |
|
Sole borrower |
£33,000 |
£170,000 |
35 years |
£350 |
£4,000 |
- |
£4,226 |
£4,736 |
*The above examples are for illustrative purposes only, all applications are assessed on a case-by-case basis under Santander’s affordability criteria and existing LTI requirements.
Customers can see how much more they can borrow using Santander’s online calculators: Affordability | Santander for Intermediaries
New build demand and support
Alongside improved affordability, Santander offers a range of support for customers looking to purchase a new build including:
- the ability to access up to 95% LTV on new build houses and flats;
- new-build mortgage offers which are valid for a standard nine months, providing greater certainty for brokers and customers in light of potential delays;
- a specialist new build support desk to help guide and answer questions; and
- accepting a range of builder incentives including the payment of stamp duty and legal fees up to 95% LTV.
Research by the lender showed that almost three quarters (73%) of first-time buyers and more than half (57%) next time buyers would consider buying a new build property buoyed by the Government’s proposed new towns sites.
