Those looking to buy or remortgage a home can borrow more from Santander UK.

It becomes the first major lender to reduce residential affordability rates in response to the FCA’s call earlier this month for lenders to design their affordability rates to best meet their customers’ needs, in a market where interest rates are declining.

All residential affordability rates have been reduced by up to 0.75%, bringing them to the lowest levels since 2022.

In real terms, this means that many customers applying for a residential mortgage from Santander UK can now borrow between £10,000-£35,000 more than last week, depending on their individual circumstances and subject to affordability checks and loan to income limits.

David Morris, head of homes, Santander UK, said: “Helping customers achieve their homeownership dream is a key priority for Santander, but we know that affordability constraints continue to bite. We’re thrilled to be the first major lender to respond to the updated FCA guidance, alongside introducing a range of reduced mortgage interest rates today, fulfilling our role as a responsible lender while helping more customers to borrow what they need to release their home aspirations.”