As an example, for a joint application with two dependants buying a new-build home for £430,000 with salaries of £45,000 and £33,000 and a mortgage term of 30 years, the borrowers can borrow an extra £5,110 on a two-year fixed rate.
The lender noted that in this example, if borrowers elected a five-year fixed rate, then they could get an extra £5,671.
The above is subject to loan-to-income (LTI) thresholds.
Full mortgage applications submitted from Friday will be assessed using the new lending policy and material changes to existing applications from the same time will be reassessed.
Santander recently upped its new-build offer validity to nine months, an increase of three months. The extension aims to give peace of mind if completion takes longer than expected.
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