With news of other mortgage providers leaving the market and the rise of mortgage prisoners, this post is aimed at Magellan Home loans customers, to give some necessary information.
Who are Magellan Home Loans?
Magellan Home Loans were one of the first lenders to class themselves as a “Specialist Lender”, they launched in 2016 or 2017 offering products aimed specifically for borrowers who are unable to obtain mortgages from the high street.
Magellan had products geared towards those who were self-employed and who have complex incomes and those who have had Credit issues much more recently than most of the competition in the market.
Their core strategy appeared to be aiming for those who were locked out of obtaining a mortgage despite being able to afford it.
If you have a Mortgage with Magellen it is quite likely you were either Self Employed with one years accounts and/or had some quite severe or recent bad credit. There are general 3 types of adverse, light, medium and heavy. Magellan tended to cater more for the medium and heavy really and with rates up to 9% their rates tended to reflect it.
Although Bad Credit was quite a big thing of theirs, they were also a lender who lent to people on 0 hours or allowed more than 2 applicants and in these situations where your application was more quirky than bad credit their rates were not too bad – potentially as low as 2.99%.
Why could I be a Mortgage Prisoner with Magellan?
In early 2019, they without notice stopped trading. People with applications in had their applications cancelled, so it appears they have no interest in returning to the Mortgage Market any time soon. This will mean that they have no plans to offer retention products and so you will be sat on their Standard Variable rate once your deal finishes, this could be as high as 5.3% at the time of writing – you may actually find this is lower than the original deal you took out, so not all bad, but at the same time it is not really competitive.
Should I look to get a new mortgage?
Definitely! Magellan Home Loans had some very nice bits of criteria and all of it combined gave them a lot of unique sales points, the only time you may find you are stuck with them is if you had to take advantage of a few of their unique bits of criteria on the same application – as an example, some bad credit, 3 or 4 applicants needing all incomes and one of them being a 0 hours income, chances are that will be difficult to place, but realistically the chances of that happening are quite slim. If you used them because of one or 2 things, it could be worthwhile looking at what is available. Worst case scenario, you stay as you are.
How can we help?
We are Whole of Market. We have access to over 70 lenders at the last count. Most of Magellans sales point can be replicated elsewhere with other lenders. So chances are as mentioned, unless you have a few quirks on the same application we can probably help to get you on something more competitive than the Magellan SVR.