Magellan extends near-prime mortgages to DA advisers

Magellan extends near-prime mortgages to DA advisers

Specialist lender Magellan Homeloans has made its mortgage range available to directly authorised advisers for the first time.

It follows a pilot of the company’s new Near Prime range, which targets borrowers turned down by mainstream lenders because of their credit profile.

Simon Read, managing director for lending at Magellan Homeloans, said: “Our intermediary partners have been asking us to extend our product range up the credit curve because of the large number of borrowers who are being declined or cascaded to more expensive products as a result of other lenders’ automated credit scoring systems.

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“Following a successful pilot, we are delighted to be making our products available through directly authorised brokers.

“This development will enable more intermediaries to offer borrowers the benefits of our flexible underwriting approach and competitively priced specialist mortgage products.”

Key features

The Near Prime range includes a choice of variable and two or three-year fixed with rates starting from 3.41 per cent, depending on LTV and borrower circumstances.

It also includes personal manual underwriting and a fixed completion fee of £995 for loans up to 80 per cent LTV and £1,495 for loans up to 85 per cent LTV.

Magellan also offers a Credit Repair range, which will also be available to directly authorised firms.

When the products were launched three years ago they were made available to appointed representatives, but are now available to DA advisers as well for the first time.

This is aimed at borrowers with poor historical adverse credit resulting from an unexpected life event such as divorce, business failure or serious illness.

Appointed representatives can continue to access the product range through their network-approved packager, but directly authorised advisers can access the products through any Magellan Homeloans-approved packagers and distributors, which includes AToM, Brightstar, Brilliant Solutions, Sesame Bankhall Mortgage Processing, The Select Partnership, The Finance Centre, The Mortgage Partnership.

Adviser view

Kevin Hever, an adviser with West Midlands-based Cornerstone Financial, said: “The more choice there is the better.

“There are people who have found they are unable to move away from their lender because of credit issues following MMR.”