Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Darlington Building Society: Foreign Currency Income Should Not Be a Barrier

Chris Blewitt, head of mortgage distribution at Darlington Building Society, has highlighted the importance of looking beyond unfamiliar aspects such as foreign currency income when assessing mortgage applications.

Blewitt notes that while foreign currency income can initially seem complex, it is only one aspect of a borrower's financial situation. He points out that international business trends and remote working mean more UK-based borrowers are paid in currencies other than sterling, such as euros or US dollars. According to Blewitt, this should not automatically make a mortgage application exceptional or more difficult to assess.

He emphasises that the key questions for lenders remain unchanged: whether the employment is sustainable, the income is consistent, and the applicant demonstrates a sensible long-term ability to repay. Blewitt states that these factors are more important than the currency in which the applicant is paid.

At Darlington Building Society, every foreign currency application is manually assessed. The process involves converting income into sterling using the live XE exchange rate and applying a prudent adjustment to account for potential exchange rate movements. Blewitt explains that this approach is about recognising risk while still assessing the borrower as a whole, rather than letting one characteristic drive the decision.

He also notes that this principle applies to other specialist cases, such as complex income, later life lending, and self-employed borrowers. The focus, he says, should be on understanding the differences in each case before making a decision.

Blewitt describes Darlington Building Society's 'Confidence in Every Case' approach as a way to ensure that every application receives proper consideration by experienced underwriters, rather than guaranteeing approval.

This approach may be relevant to UK letting agents and inventory clerks who work with tenants or landlords with non-sterling income, as it highlights a lender's willingness to consider a broad range of financial backgrounds.