The Melton Building Society is opening its “transitional arrangements” to the whole market, responding to demand from brokers.
The society announced in February it will be reviewing applications that fall under the Transitional Arrangements clause of the Mortgage Market Review (MMR).
When the 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.
This created demand for solutions on the market and the Melton decided 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, commented back in February.
“We are committed to working with brokers to meet the needs of borrowers and provide a competitive market place,” Nicola Alvarez, the society’s sales and marketing director commented now.
The Melton has made all of its products available to “transitional” borrowers. As it is including brokers into the “transitional” services range now, the Melton has set requirements for their approval into the scheme as well.
All broker applications will be handled through the Melton’s partnership with SBG Group via Sesame Bankhall Mortgage Processing, same for the borrower application. All mortgage products within the society range are available for applications under MMR Transitional Rules.
Following criteria must be met by all applicants:
- 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
