Major lender cuts amount it will lend to first-time buyers

Santander is today cutting its lending limit from five times to four-and-half times salary for first-time buyers.

It means that a first-timer earning £40,000 will not be able to borrow £200,000 any more, but a maximum of £180,000.

The move by Santander follows Barclays which last month cut its limit from five-and-a-half times income to four-and-a-half times income for all borrowers.

The new caps on lending limits come as mortgage rates have fallen to record lows.

Santander will continue to offer loans of up to five times salary for home movers.

Andrew Montlake, of mortgage broker Coreco, said: “The changes will hit buyers in London the most, and particularly first-time buyers.”


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  1. Propert NW8 Agent

    Aren’t the big banks just short on money after all the big loans they lend to the big Corp’s in the last 12-18months, like BT when buying EE ?

  2. Eric Walker

    I hear there is few quid in HSBC in Switzerland.


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