For many foreign nationals, buying a property in Britain has never been about proving they could afford the mortgage.

It has been about proving they could save the deposit.

An engineer relocating from Germany, a technology professional moving from India, a senior banker arriving from Singapore or an executive transferred from the United States may all earn substantial salaries and have excellent long-term career prospects. Yet many have found themselves needing to accumulate deposits of 25% or more simply because their residency status placed them outside standard lending criteria.

That often meant delaying home ownership for years while continuing to rent, despite being financially capable of supporting the mortgage itself.

Santander's latest policy change has the potential to alter that position significantly.

From 26 June 2026, eligible foreign national applicants can now borrow up to 90% of a property's value, compared with the previous maximum of 75%, subject to the lender's affordability and verification requirements. Mortgage Solutions first reported the changes, with Santander confirming the revised criteria for intermediary partners.

Although this is a single lender policy update, its significance extends well beyond Santander itself.

A Policy Change That Reflects A Changing Market

Mortgage lending rarely changes overnight.

Lenders continually analyse performance, monitor risk and review borrower behaviour before making meaningful adjustments to lending policy.

When a major high street bank materially expands its appetite for a particular borrower group, it is usually because years of lending data have demonstrated that those customers perform well.

That appears to be the case here.

The UK continues to attract highly skilled professionals from around the world across sectors including financial services, technology, healthcare, engineering and professional services. Many arrive initially on work visas before establishing long-term careers, purchasing family homes and contributing to the wider economy.

Increasingly, these borrowers are no longer viewed as niche applicants requiring specialist lending solutions.

Instead, they represent a growing section of the mainstream mortgage market.

Santander's decision reflects that evolution.

Rather than viewing nationality as the defining characteristic, lenders are becoming more interested in factors such as employment stability, affordability, income sustainability and long-term residency intentions.

That represents a notable shift in underwriting philosophy.

Why Deposits Have Historically Been The Biggest Obstacle

For many foreign national buyers, affordability has rarely been the greatest challenge.

The mathematics have often been straightforward.

A couple earning a combined income of £180,000 may comfortably afford mortgage repayments on a £600,000 property. However, under previous lending criteria requiring a 25% deposit, they would first need to save £150,000 before legal fees, Stamp Duty Land Tax and moving costs were even considered.

That is a significant amount of capital for anyone.

For professionals who have also incurred relocation expenses, visa costs, rental payments and the practical costs of establishing themselves in a new country, accumulating that level of deposit can take considerably longer than their earnings might suggest.

Under Santander's revised policy, that same purchase may require a deposit of approximately £60,000 instead.

While that remains a substantial commitment, it fundamentally changes the accessibility of home ownership for many buyers.

It also allows purchasers to retain more of their capital for future investment, education costs or emergency reserves rather than committing everything to the initial purchase.

Confidence Does Not Mean Compromising Underwriting

It would be easy to interpret a higher loan-to-value as evidence that lenders are becoming less cautious.

The reality is rather different.

Santander has maintained robust underwriting standards and continues to require applicants to satisfy detailed affordability and verification requirements. Applicants earning below £200,000 will still need to demonstrate their residency history, provide evidence of salary being received into UK bank accounts and verify the source of their deposit before lending is approved.

In other words, the lender has reduced the deposit hurdle without reducing the importance of thorough underwriting.

That distinction is important.

The strongest mortgage markets are rarely those where lending standards become relaxed. Instead, they are markets where lenders become better at assessing genuine risk.

A borrower earning a stable six-figure salary, working for a multinational employer and planning to remain in Britain for the foreseeable future may represent a considerably lower lending risk than their nationality alone might previously have suggested.

Modern underwriting increasingly recognises that reality.

Could Other Lenders Follow?

History suggests that major lender policy changes rarely occur in complete isolation.

The UK mortgage market is highly competitive, particularly for professionally employed borrowers with strong incomes and relatively low default risk. When one major lender introduces a more attractive proposition for a growing customer segment, competitors inevitably review their own position.

That does not necessarily mean every lender will immediately increase their maximum loan-to-value.

Each institution has its own appetite for risk, funding model and underwriting philosophy.

However, Santander's announcement is likely to encourage wider discussion across the lending market regarding how foreign national applications are assessed.

For borrowers, that competition is almost always positive.

Greater lender participation typically leads to improved product choice, increased flexibility and more opportunities to match applicants with lenders whose criteria genuinely reflect their circumstances.

Every Foreign National Mortgage Requires Individual Assessment

While Santander's announcement is undoubtedly welcome, it would be a mistake to assume that every foreign national purchaser should automatically apply there.

Mortgage advice has become considerably more sophisticated than simply identifying the lender offering the highest loan-to-value.

Nationality represents only one element of a much broader underwriting assessment.

Visa category, length of UK residency, profession, employment structure, probationary periods, overseas assets, previous credit history, currency exposure and long-term residency intentions can all influence which lender ultimately provides the most appropriate solution.

Some applicants may benefit from Santander's revised policy.

Others may find that a building society offers greater flexibility around visa requirements, while high-net-worth borrowers may achieve more favourable outcomes through private banks that take a holistic view of their wider financial position.

Selecting the right lender therefore remains every bit as important as understanding the headline criteria.

The Willow Perspective

Santander's decision to increase its maximum loan-to-value for eligible foreign national applicants is one of the most encouraging developments we have seen in this area of the mortgage market for several years.

Not simply because deposits have become smaller, but because it reflects a broader change in how lenders are viewing internationally mobile professionals.

The UK remains one of the world's leading destinations for skilled workers, entrepreneurs and senior executives. As those individuals establish careers, raise families and make long-term commitments to living here, it is entirely logical that mortgage lending evolves alongside them.

We expect foreign national lending to remain an area of increasing competition over the coming years, with lenders continuing to refine their criteria as they gain greater confidence in this growing borrower segment.

For prospective purchasers, however, one principle remains unchanged.

Every lender assesses foreign national applications differently.

Understanding those differences before submitting an application can make a significant difference to the borrowing available, the interest rate achieved and, ultimately, whether a purchase proceeds successfully.

As specialist advisers working with foreign nationals, expatriates and internationally mobile clients, we believe this latest announcement is an important step forward. More importantly, it reinforces that expert lender selection remains one of the most valuable aspects of the mortgage advice process.