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Santander to introduce two-tiered B2L affordability tests


Santander is introducing a new two-tier buy-to-let affordability calculation as the Government’s tax shake up is expected to increase costs for landlords.

From 21 February, the affordability rate for loans over 60 per cent LTV will increase from 5 per cent to 5.5 per cent.

For loans with an LTV of 60 per cent or below, the existing 5 per cent affordability rate will remain.

A spokeswoman says: “This change reflects our continued prudent approach to lending and affordability and is in line with current market conditions.

“The buy-to-let market is undergoing significant change with the additional 3 per cent stamp duty on second home purchases from 1 April, and the phased reduction in tax relief starting next year adding to the cost of being a landlord. As a result landlords will be reviewing their business models and lenders will also be reviewing their rental cover calculations to ensure affordability assessments keep pace with the change.

“Buy-to-let continues to be a strong market and key priority for us as we look to grow our buy-to-let business. Our competitive buy-to-let rates combined with our quick time to offer mean that we are well placed to help customers keen to invest in property.”



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In Focus — May 2015: private medical insurance market in Germany

Welcome to the latest edition of In Focus. In this issue, Jelf examines the private medical insurance market for employers with expatriate workforces in Germany. This includes the common challenges faced in sourcing appropriate coverage, along with a selection of available solutions. This will be of particular interest to HR/reward decision makers with employees based in Germany. It will assess the cultural norms, risks and backdrop that are relevant to organisations with expatriate staff in this location.


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