Magellan Homeloans has reviewed its criteria on adverse credit history with status 3 or higher on unsecured credit arrangements.
It will now treat any status 3 or higher unsecured credit blips in the same way as a default.
“It’s important to us that we have consistency across our decision-making and because our underwriters look at each case on its merits rather than relying on automated processes, we can look behind the numbers,“ said Simon Read (pictured), Magellan’s managing director.
“A borrower has no control over whether a creditor defaults a debt or not however, that decision can affect their ability to get a mortgage. By using this approach, we believe we treat our borrowers in an even-handed and consistent way, and enable our intermediaries to help more customers.”
The lender is also extending its offer expiry period on existing properties to 120 days and on new build properties to 180 days.
Read said: “We understand the time invested by intermediaries in getting their clients to acceptance and offer, only to have delays in the buying process put it all at risk. By extending the offer expiry period, we can provide their clients with more certainty on their mortgage offer and potentially save time and money on re-application.
“This can particularly be the case with new builds where many buyers have to wait months for the property to be completed. Along with accepting builder-gifted deposits up to a maximum of 5% and paying proc fees on exchange of contracts, we‘re sending out a clear signal that Magellan is well equipped to deal with the financing of new build properties.”
