Santander updates new build affordability

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. Illustrative examples provided by the lender show that both joint and sole borrowers could now be able to borrow thousands more for a new-build property compared to an older one.

For example, a sole borrower purchasing a property worth £170,000 on a 35-year mortgage could now be eligible to borrow up to £4,736 on a five-year fixed rate mortgage - with joint borrowers being eligible to borrow even more due to their increased purchasing power.

The lender offers a range of support for new build customers, including mortgage offers which are valid for nine months and offering up to 95% LTV on new build homes. This is, Santander says, because 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.