In a broker statement, the lender said it would start to consider residential applications through its introducer internet where some of the borrower’s employed income is paid in a foreign currency.
Where a repayment vehicle is held in a foreign currency, Santander said it would consider applications on a case by case basis for existing customers moving home that are borrowing the same or less.
Under the MCD rules, lenders will be required to put in place additional consumer safeguards where loans are in a foreign currency, to protect borrowers against exchange rate risk.
Mortgage Solutions revealed details of Santander’s preparations for the MCD earlier this month.
In order to speed up offer times, the lender has also introduced a change to its valuation process, which will see residential purchase and buy-to-let purchase and remortgage with a free valuation instructed straight away where cases are set up by 4pm. For applications set up after 4pm, the valuation will be instructed the following day.
Income details within its full mortgage application have also been updated to include the full income table for all residential and buy-to-let applications.
In further changes to prepare for the MCD deadline, the KFI on Santander’s introducer internet has been revamped to capture applicants that receive either or both income and a repayment vehicle in a foreign currency. However, the data will not displayed in the KFI until next year, Santander said.
For pipeline business, the lender said all full mortgage applications submitted by brokers by 10pm on Saturday 19 September will not be affected by the MCD rule changes. System updates will apply to all applications submitted from today, or where a material change is made to an application submitted by 10pm on Saturday 19 September.
