Banking Giants Introduce New Loans

Mortgage giant Santander’s, the second biggest lender in the UK has announced plans to loosen their lending criteria and provide a greater diversity of loans for property investors.

Paving the way for other leading lenders to follow suite, Santander’s have revealed that they plan to increase the maximum loan sizes for first time buyers by up to 10%, thus offering them greater opportunities to get on the property ladder…

Whilst the recession may have hindered many first time buyers from investing in property, this announcement by Santander’s should quickly prompt other lenders into offering more competitive mortgage deals and ultimately smaller deposits.

Of their mortgage deals which will be most affected:

• The limit for first time buyers on new apartments will rise from 70% LTV to 80% LTV
• The limit for buying homes for first time buyers will rise from 80% LTV to 90% LTV

However, for non-first time buyers, the news isn’t so great…

Santander’s have divulged that the limit for non-first time buyers of newly built property developments will remain at 70% LTV for apartments and 80% LTV for houses.

Yet even despite this limitation for existing property investors, such improvements to their lending criteria will have a positive impact on the property market and ultimately on the economy.

Original Article

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Peter Franklin, Property Mentor Delegate

I used to believe stocks and shares were the only way forward, yet after 15 years of property investing, neither of these can compare with the sheer velocity or impact that property investment can have on your bank account. Only with property can you truly experience the power of being in control of immediate cash flow AND capital appreciation. Stocks and shares simply cannot compete. Read more