Published 11 February 2015 · Last reviewed 25 February 2017 · Older article — see current rates

Bad news as Abbey – Santander changes Mortgage income rules for First Time Buyers to 4.49x income.

As if things where not bad enough we have seen yet another lender real under pressure of the regulators by introducing even more prudent loan to income measures.

Abbey – Santander originally made some dramatic changes in the run up to Mortgage Market Review (MMR) introduced by Financial Conduct Authority. Before major affordability changes the lender was known to be one of the best for high income multiple applications often going above 5 times income for applicants with a good profile.

Unfortunately Woolwich another major lender changes its whole affordability policy by putting a cap on all lending to 4.5 times income apart from loans over 90% and over which was already limited to 4 times income leaving people looking for a purchase in the south in a very tricky position.

The Santander- Abbey changes will come into effect on From Friday 13 February 2015:

All first time buyer mortgage applications submitted by close of business on Thursday 12 February (provided they do not have any subsequent material changes) will not be affected and will continue to be progressed on the existing income multiple policy.

However from Friday 13 February if a ‘material change’ is made or a new application is submitted the new income multiple rule.