Many 'mortgage misfits' have kept up to date with mortgage repayments for many years but find they no longer meet the requirements of new affordability rules under MMR. Misfits may not be offered a remortgage with their same lender and are often unable to access the wider mortgage market in a meaningful way.
Earlier this week, Ipswich Building Society announced a new lending programme which will consider these cases as long as the borrower is not increasing their loan and their circumstances have not changed. The Society has previously supported transitional lending to existing borrowers only.
Martin Reason, chief executive at 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."
