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.
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Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
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