It’s been a while since I wrote about a new mortgage lender entering the mix, but the RBS funded Magellan Home Loans gained permission to trade from the Financial Conduct Authority (FCA) in 2013 and crept quietly into the market in August last year.
Magellan are a “niche” lender specialising in clients with adverse or bad credit and they have chosen carefully the businesses they intend to work with.
They have recognised that all sorts of people have been affected by the recent recession and rather than them being completely discounted for a mortgage for years, Magellan will look at every case on an individual basis. They will do pretty much any adverse, so long as you have been “good for a year.”
It seems unfair to turn away customers who have lost their jobs and fallen behind with payments, but made every effort to keep in touch and make arrangements with their creditors. I remember a guy who took a year out to care for his terminally ill wife, and couldn’t meet his bills and wanted to sell his house and move down market, but nobody would lend him the money as he was blacklisted.
The ex-wife who saved the £1,200 mortgage payments up in her savings account, rather than paying the mortgage for a year before running off to Spain may not want another mortgage in the UK but the husband she left to get repossessed 3 years ago may finally be able to by again.
The one thing you have to have to qualify for a mortgage from Magellan is some adverse credit, anything goes really as long as it’s over 12 months old - IVA / Debt Management Plans, CCJs, defaults and mortgage arrears, repossessed properties and payday loans.
The interest rates aren’t bad, but the main thing I like about Magellan is their sense of fair play. None of their products have any penalties if you want to leave. That basically means that as soon as you are eligible for a High Street mortgage at a high street interest rate – you are free to leave. Fair play Magellan!
Contact us for more information or speak to an adviser on 01628 507477.
Recent posts
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
14 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
16 days ago
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
26 days ago
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
More information
Trusted by
