5 Year degree capping-does it affect me? Please advise

Have been in the UK 9 years come next January 2015. Out of the 9 years, I have spent 7 years as a student (BA & MSc), on Tier 4 and 2 years on Post graduate Visa. I'm currently doing an MPhil Programme which comes to an end December 2014. My current student Visa expires in February 2015. I recently applied to another University (I do not want to continue with my current Uni as they are too expensive) for a PhD programme starting March 2015 and they seem reluctant to offer me a place because of the new capping rules. My question is, are they right to say no purely based on capping rules, considering this is a PhD programme I want to enroll for?

Secondly, suppose by Feb 2015,I will not have attained the MPhil qualification, can I start a PhD at another Uni or will I be affected by the UKBA progression rule?

Lastly but not the least, my current Uni recently wrote to me stating that they want to extend my writting up of the MPhil thesis to December 2015. Considering my Visa will be expiring in February, can UKBA agree to extend my visa based on this extension period? Please kindly advise and also suggest the best option for me.