Santander increases the maximum loan size to £1 million for borrowers with 10% deposits
Santander for Intermediaries has increased the maximum mortgage loan size from £570,000 to £1 million for borrowers with a 10% deposit.
The Spanish lender has revamped its large mortgage loan proposition and is working harder to attract wealthier borrowers. This latest policy change means that Santander offers some of the most generous terms for borrowers seeking lower deposit large mortgage loans.
The bank offers two-year and five-year fixes to borrowers purchasing or remortgaging a property with a 10% deposit up to £1 million.
Aaron Strutt, product director at Trinity Financial, says: “Many mortgage lenders issue 10% deposit mortgages, but they cap the maximum loan size. For example, Nationwide for Intermediaries has a maximum loan size of £750,000 if you have a 10% deposit, and Barclays maximum loan size is £570,000.
“Lower deposit and larger mortgages tend to be popular with professionals buying in London and the south-east mainly because the house prices are high. Mortgage lenders calculate the maximum loan size using affordability calculations, so borrowers must meet strict rules and have strong credit scores to secure these larger loans.”
Which lenders offer 10% deposit mortgages up to £1 million?
Some banks and building societies offer these low-deposit mortgages, although the rates and arrangement fees tend to vary. The trick is to try to get a mortgage with the lender offering the most competitively priced rates.
Metro Bank for Intermediaries recently increased the maximum loan size applicants can borrow if they have a 10% deposit from £675,000 to £1.125 million for non new build properties. For borrowers with 15% deposits, the maximum loan size has increased significantly from £1m to £2m.
Clydesdale Bank offers mortgages mainly to professionals seeking 10% deposit mortgages up to £1 million. If applicants are not professionals, the maximum loan size is £600,000.
To qualify for Clydesdale's higher loan size and smaller deposit mortgage, one or more of the applicants must be fully qualified and employed in the following occupations: Accountants, Architects, Barristers, Chartered Surveyors, Engineers. Also, Financial Advisers (including Mortgage Advisors), Medical (Ambulance Workers, Dentists, Doctors, Nurses, and any NHS band 3+ or non-NHS equivalent), Pilots, Police Officers, Solicitors, Teachers and Vets.
Trinity Financial's brokers also have access to Kent Reliance, Kensington Mortgages, Coutts, and Investec's larger mortgage loans, which are available to borrowers with smaller deposits.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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