Mortgage News
Melton joins Ipswich in serving transitional mortgage borrowers
The Melton Building Society has joined the Ipswich in changing its policy to consider mortgage applications from borrowers transferring from other lenders under the transitional arrangements in the Mortgage Market Review (MMR).
The rules were put in place by the regulator for borrowers who had a mortgage in place before the MMR was launched on 26 April last year but would fail to meet the stricter affordability and interest-only rules brought about under the new regime.
Martin Reason, chief executive of the Melton, said: “We believe it is our responsibility to give existing borrowers who have a good payment record and no change of circumstances a choice of competitive mortgage products.
“As a mutual which takes a personal approach to lending we are best positioned to help these mortgage prisoners who may otherwise struggle with machine-generated affordability tests.”
Initially, applications will only be considered through the Melton’s partnership with Sesame Bankhall Group through Sesame Bankhall Mortgage Processing. All mortgage products within the society range are available for applications under MMR transitional rules.
To be considered under the rules applications must be a prime residential mortgage, on capital and interest, with no additional borrowing and no fees added.
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
Sponsored by Aldermore
Mortgages cannot exceed 60% loan-to-value, must be at least £100,000 and no more than £350,000 and the new mortgage rate and monthly payment must be the same or lower than the current mortgage.
The existing mortgage must have been held for a minimum of three years with no arrears at any time and borrowers must have a clean credit history.
Ipswich Building Society announced its move to serve transitional borrowers from other lenders earlier this week. Previously the lender only applied the rules to its existing customers.