Santander UK has today announced it has reduced its residential affordability rates, following the Bank of England’s base rate cut in February.
The updated calculations take into account a reduction in residential affordability rates by 0.25%, as well as updated household expenditure figures, making it easier for customers to borrow more.
Brokers can input their clients’ details into Santander’s affordability calculator to see how the reductions affect them.
Last week, Santander also became the first high-street mortgage lender to offer a sub-4% mortgage in 2025.
The new products and rate changes follow the lender’s new broker pledges announced for 2025, as it aims to address some of the most common challenges experienced by intermediaries in the market.
The pledges are:
No dual pricing
Brokers will always have access to Santander’s best pricing for purchase, remortgage, and product transfer clients.
Minimum 24 hours’ notice of product withdrawals
Santander understands that withdrawing products at short notice places pressure on brokers and their clients.
As such, a guaranteed notice period will provide confidence and assurance to recommend Santander products, as well as provide more time for brokers to reach out to clients who may be impacted by the product withdrawal.
Improved product transfer process
Santander is building a transparent and improved product transfer process, including developing new web content to outline the journey.
The lender will help brokers identify when a client’s current deal is coming to an end and update its product maturity letters, directing clients back to their broker when their deal is due to end.
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About Santander
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 31 December 2024, the bank had around 18,000 employees and serves around 14 million active customers, including 7 million digital customers. Santander UK is subject to the full supervision of the FCA and the PRA in the UK. Santander UK plc customers’ eligible deposits are protected by the FSCS in the UK.
Banco Santander (SAN SM, STD US, BNC.LN) is a leading commercial bank, founded in 1857 and headquartered in Spain and one of the largest banks in the world by market capitalization. The group’s activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This operating model allows the bank to better leverage its unique combination of global scale and local leadership. Banco Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way.