The Melton Building Society has decided to start reviewing mortgage applications that fall under the Transitional Arrangements clause of the MMR.
When the Mortgage Market Review (MMR) changes came into force last April, some borrowers were left “trapped” in their mortgages. This means that under the new stricter rules they are not considered eligible to receive a mortgage. The MMR made provisions for those cases with the Transitional Arrangements clause but such borrowers still have hard time to continue their mortgage repayments.
Responding to that new demand on the market, The Melton has made the decision to include the assessment of “transitional” cases in its range of services.
“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,” Martin Reason, chief executive of the Melton, said.
The Melton is making all of its products available to “transitional” borrowers. Initially, their applications will be handled only through the Melton’s partnership with SBG Group via Sesame Bankhall Mortgage Processing.
In order for an application to be considered, the following criteria must be met:
- Prime residential mortgage
- Capital and interest repayment method
- Maximum loan to value of 60%
- £ for £ lending only (no additional borrowing and no addition of fees)
- Minimum loan £100,000 and maximum loan £350,000
- New mortgage rate and monthly payment must be the same or lower than the current mortgage
- Existing mortgage must have been held for a minimum of 3 years with no arrears at any time
- Borrowers must have a clean credit history, no adverse credit will be permitted
- The new mortgage must be in the best interest of the borrower
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