Santander extends maximum mortgage term to 40 years
Santander is overhauling its length of term and maximum age criteria for residential and buy-to-let (BTL) mortgages.
For residential capital and interest repayment deals, the lender is extending its maximum mortgage term to 40 years from 35 years.
However, for interest-only where the repayment is by endowment or investment, it is reducing the term from 35 years to 25 years. Interest-only where the repayment is by sale of property remains at 25 years.
Loan to value boost
For part and part repayment deals, Santander is increasing the maximum loan to value (the percentage of the property’s value that can be borrowed) to 85 per cent from 75 per cent, with a maximum 50 per cent on interest-only.
For buy-to-let lending, Santander is extending its maximum term to 40 years from 25 years and also increasing the maximum permitted age at maturity to 85th birthday from 75th birthday.
The lender said it was also making some changes to its affordability calculations.
The changes will come into force on 15 April.