Magellan Homeloans

Magellan Homeloans closes for new business

Magellan Homeloans has announced that it has closed to new business with immediate effect.

The specialist mortgage lender — which offered buy-to-let loans — will cease accepting new business, although it will continue to honour unexpired mortgage offers.

Decisions in principle and applications in the pipeline will not be progressed any further.

It claimed it had taken this action in response to competitive pressures, including a number of lenders reducing their mortgage loan interest rates and increasing credit risk despite increased funding costs.

Matt Gilmour, CEO at Magellan Homeloans, stated that it did not wish to compete in a market that it viewed as unsustainable.

“The competitive landscape has continued to shift, mortgage loan interest rates are reducing when the cost of funding is rising, and some lenders are taking on more credit risk despite the volatile economic backdrop,” he claimed.

A 30-day consultation period will shortly commence for the specialist lender’s 65 employees dedicated to new business.

Matt added: “Magellan has prided itself on maintaining excellent credit standards while helping customers who have been disenfranchised by high street lenders.

“The determination, commitment and tenacity shown by everyone at Magellan Homeloans has transformed our business into a mortgage lender to be proud of.

“It is with great regret and sadness that the board has concluded that it is no longer a long-term viable business.”

Applicants who have paid administration or valuation fees, but have not received a mortgage offer, will have those fees refunded.

Existing customers whose mortgage loans have completed will not be affected by the decision.

Applicants impacted by this announcement should contact their mortgage broker/adviser with whom Magellan will, within the next two weeks, seek to make arrangements where a refund of fees is due. 

Existing borrowers wishing to contact Magellan Homeloans should call 0330 335 5777, option 3 for residential mortgages or 0345 840 0251 for buy to let mortgages.

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