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Santander reverts to daily exchange rate for foreign currency mortgages

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  • 16/01/2017
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Santander reverts to daily exchange rate for foreign currency mortgages
Santander has amended how it determines the exchange rate for foreign income mortgages, doing the currency conversion on the day of calculation.

The change will apply to applications where any element of employed income is paid in the US Dollar, Euro, Swiss Franc and UAE Dirham.

Santander will require the sterling equivalent to be calculated and discounted by 25% to account for currency fluctuations, with the figure then input into the relevant field on the introducer internet.

In the wake of the EU referendum result last year, Santander opted to use the average exchange rate before the leave vote, rather than the current exchange rate, which had dropped significantly following the announcement.

A spokesperson for Santander said: “Last year, as a responsible lender we worked to provide consistency in a time when the financial landscape was rapidly evolving, we made the decision to hold the conversion at fixed values due to the volatile nature of exchange rates. Today, we use the daily exchange rate, as the landscape has settled somewhat.

“Following the changes introduced by the Mortgage Credit Directive, we continue to be one of only a few lenders who accept foreign income, providing flexibility to those customers who earn any part of their income in Euros, US Dollars, Swiss Francs and UAE Dirham. Please speak to your Santander BDM if you have any queries or want to know more.”

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