Santander reveals mortgage credit directive changes


Santander has revealed the changes it will make to comply with the European Mortgage Credit Directive.

As part of the rules, which will come into effect in March, lenders have the option of switching to the European Standardised Information Sheet or a KFI+, although they have to switch to the ESIS by March 2019. Santander has chosen to implement the KFI+.

The lender will also introduce foreign currency fields into its applications and will take into account foreign incomes in “all major currencies” as long as the customer is resident in the UK.

Consumer buy-to-let, or so-called “accidental landlords”, will become regulated from March. Santander says it will update its buy-to-let proposition before the rules come into effect.

A spokeswoman says: “We want to ensure we support all areas of the market, including those who need to use their foreign income for affordability, which is why we will shortly be introducing foreign currency fields into applications to avoid customer disruption in March. As long as the customer is resident in the UK, we will take into account foreign income in all major currencies.

“We are committed to the buy-to-let market. We are working on our proposition and by the end of the year will be changing our system to identify consumer and investment buy-to-let customers ahead of the regulatory requirement in March.”

Last week, Legal & General Mortgage Club launched an MCD matrix so brokers know what changes lenders are going to make to comply with the incoming rules.