Santander will use the average exchange rate before the leave vote on the 23 June to calculate foreign currency loans, rather than the frequently fluctuating exchange rate.
The sterling equivalent must also be calculated and discounted by 25% to allow for currency fluctuations, with the figure then input into the relevant field in Santander’s Introducer Internet.
The value of sterling has slumped since the outcome of the EU referendum vote to reach a 31-year low against the US dollar, with the pound still clouded by uncertainty on what will happen to its value next.
The exchange rates for Santander’s foreign currency mortgages are now as follows:
- US Dollar (USD) – 1.439
- Euro (EUR) – 1.276
- Swiss Franc (CHF) – 1.385
- UAE Dirham (AED) – 5.286
Santander said it will continue to review its position and plans to provide a further update to foreign currency exchange rates based on the longer-term trend.