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
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.
Increase in zero-deposit mortgages in 2024
22 days ago
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.
Average savings by age in the UK
23 days ago
Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
More information
Trusted by
