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New mortgage lender targets those with poor credit history

New mortgage lender targets those with poor credit history

A new mortgage lender, Magellan Homeloans, is piloting a mortgage service aimed at borrowers disenfranchised by traditional high street lenders.
The new service, available through Mortgage Advice Bureau which operates from estate agency branches, is designed for borrowers who have experienced a one-off life event which has resulted in an adverse credit record.

The lender has made it clear that this does not signal a return to irresponsible lending, and that everyone is entitled to a one-off financial wobble.

Provided that applicants can explain and document the reasons for their financial difficulties and can demonstrate they have had a clean credit history for the last 12 months, Magellan Homeloans says it will consider their application.
Matt Gilmour, managing director, said: “Magellan Homeloans is opening up a new route to home ownership by making mortgages available to borrowers who can demonstrate they have regained control of their financial affairs.
“Our philosophy is that we understand people hit difficult patches which can lead to financial problems. What’s important to us is the applicant’s ability to explain their difficulties and demonstrate how they have been able to restore financial stability so they can now afford a mortgage.
“In our opinion, a short-term financial wobble should not preclude borrowers from mortgage finance on a long-term basis. We’re delighted to be piloting a new proposition which gives credit impaired borrowers a real chance to obtain mortgage funding once again.”
Magellan is offering borrowers a choice of five products, each accommodating different levels of credit impairment depending on the loan-to-value ratio. The maximum LTV is 75%, and the loans are available for up to £400,000.

Borrowers in England and Wales must be over 25, with a minimum income of £25,000. Applicants can employed, self-employed and first-time buyers.