Pre MMR Additional Borrowing Application

mistykal5

Hi all,

We made an additional borrowing application of £5,000 with Halifax 30 working days before MMR came into effect.

For several reasons the application has dragged on - not through our fault but the mortgage advisor - and I was recently told by the mortgage area manager that since MMR Halifax only accept additional borrowing applications of over £10,000. He stated that he would be speaking with the mortgage advisor as to why this has taken so long, so it's not an official "no", but will probably be a no for our original additional borrowing application.

Does anyone know whether the bank can do this, as our application was made pre MMR and with sufficient time for our application to be processed.

Any advice would be greatly appreciated - This has been going on since the beginning of March!! We got our mortgage with a lot less hassle!! Thanks.

Thrugelmir

The raising of the loan threshold is most likely a commercial decision due to the increased cost of processing post MMR. One would expect your application to be treated on its own merits. The lender would honour the amount applied for if you pass the underwriting hurdles.

ethank

Many lenders introduced MMR processes well before the deadline. So it is entirely possible that Halifax already were.

They can set any requirements they want on lending.

There are comments from people on MSE from people who have applied preMMR and the lender has made a mistake, and when they were re-processed they had to go through a MMR process. So I don't think you'll be able to challenge it.

Ethan

mistykal5

Thanks for your replies.

I'm assuming at Halifax they changed their lending criteria post MMR as at the time of our application we could apply for the minimum £5,000 with only having to provide 3 months payslips and now we could only apply for the minimum £10,000 and would have to apply much more information.

I just assumed that if you made an application to borrow money then halfway through the process the lender couldn't change it's lending criteria without informing you.

Has anyone else experienced similar problems, i.e. applied for a mortgage pre-MMR, the changes came into affect and the lender applied the new changes to the existing application? What was the outcome? Thanks.