We started the month talking about how big lenders are blocking applications for porting loans or remortgaging. This is despite the transitional rules brought in to protect existing borrowers from affordability assessments, on the condition that they don’t borrow more or extend the term.
Ipswich Building Society and Mowbray Building Society have started accepting transitional applications, providing an alternative for customers turned down by high street banks. This could open the door to “mortgage misfits” who wish to downsize or change provider to benefit from low rates.
The CEO of Ipswich BS, Paul Winter, announced: “We are standing up for mortgage misfits who are often overlooked by lenders who insist on machine-only application processes. It is possible to still give people a choice while retaining a diligent approach to lending.”
The mutual has even released a video for new customers.
And industry is taking note, with bigger lenders being put in the spotlight for their actions. Mr Winter is urging his peers to consider “offering choices for those who fall outside the norm.”
Mowbray BS is offering its service through Sesame Bankhall Mortgage Processing.
Life is not as black and white as these big lenders (or their computers) seem to think it is. I’m glad the smaller lenders agree. And I wonder how long it may be before other building societies follow suit.
We’ll keep our eyes and ears open for you. But if you need some advice, give us a call.