New lender Magellan Homeloans offering adverse credit mortgages

A new mortgage lender is offering mortgages to borrowers with high levels of adverse credit, although their rates are not cheap at 8.55%. Magellen Homeloans has a range of mortgages for borrowers who have previously had County Court Judgements, mortgage defaults and missed payments. They may also lend to discharged bankrupts. Borrowers will have to provide an explanation as to why they got into financial difficulties and they must have had clean credit for 12 months. Mortgage rates are variable at 8% over LIBOR and there are no early repayment charges on any of their rates. Matt Gilmour, managing director of Magellan Homeloans, told The Times: “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.” August 9, 2013