Magellan Homeloans is moving into the prime specialist residential mortgage sector with the introduction of its new range of mortgages – Magellan Specialist Prime – available across England, Wales and Scotland.
This comes after the specialist lender’s price reduction and ‘January Sale’ announcements made yesterday.
The new range consists of two-year and five–year fixed rate mortgages, each with a fees free option. The two-year fixed rates start at 2.74% and the five-year fixed rates start at 3.39%. Loans are available up to 90% LTV with a maximum term across the range of 40 years.
The new range requires a minimum of 12 months trading accounts for self-employed borrowers and it will consider up to 100% of more complex employed income, including second jobs, shift allowance, zero-hours contracts, bonus, overtime and commission, where it is proven to have been consistent and is sustainable.
Unlimited family gifted deposits or equity as well as Help to Buy applications are also acceptable.
Magellan’s says the move is part of its strategy of being “one of the first ports of call outside of the High Street for intermediaries”.
Simon Read, Magellan’s managing director, said: “Our new specialist prime range is designed for the many borrowers who fall just outside of the criteria set by high street and credit scoring lenders.
“This can simply be because they are self-employed, recently employed, a first time buyer, have a low credit score, have a very small credit blemish, or are financing an unusual property. Whatever their circumstances, we can offer a more flexible approach to help clients who don’t fit the mould.
“We understand the frustrations that intermediaries face when finding a suitable solution for clients who fall just outside of the criteria set by high street and credit scoring lenders but are very capable of managing and affording a mortgage on their dream home. We don’t credit score and our bespoke approach to manual underwriting is exactly that – adapted to each individual circumstance.
“This enables us to offer a simple process for straightforward cases while being able to get into the detail if the client’s profile requires it.
“When we created Magellan Homeloans five years ago, it was to meet the needs of those borrowers who were being turned down by other lenders because their profile didn’t fit.
“We continue to offer competitive mortgages to suit many different circumstances and using our expertise, know-how and innovative problem-solving, we’ve built on those foundations, moving into other markets such as buy-to-let and Help to Buy. It’s now the right time to expand our offering to help those homebuyers who need a more flexible approach than the high street or other credit scoring lenders can offer.”