Melton offers transitional arrangement deals
Under the MMR’s rules lenders are able to waive affordability checks as long as the consumer doesn’t want to borrow more money.
The Melton is following Ipswich Building Society by altering its rules, as lenders look to serve mortgage prisoners trapped with their existing lender.
Nicola Alvarez, director of sales and marketing at the Melton, said: “We are committed to working with brokers to meet the needs of borrowers and provide a competitive marketplace.”
For products to fit the transitional arrangements criteria borrowers must be looking for a prime residential mortgage which does not exceed 60% LTV, while they should be looking for a loan between £100,000 and £350,000.
The borrower’s existing mortgage must have been held for three years with no arrears, borrowers must have a clean credit history, while the new mortgage must be what The Melton deems ‘in the best interest of the borrower’.