StepChange Financial Solutions is a free, charity-operated mortgage and equity release advice service. It is a subsidiary of StepChange Debt Charity (previously known as the Consumer Credit Counselling Service).
It can now recommend a Magellan mortgage to clients who may have experienced an historical life event resulting in an adverse credit record, which continues to prevent them from accessing further credit.
Mark Snape (pictured), managing director at Magellan Homeloans, said: “StepChange Financial Solutions is an ideal distribution partner for Magellan and we’re delighted to be joining forces with them.
“Many of their clients have experienced a life event in the past such as redundancy, divorce or a business failure, which has resulted in an adverse credit record and which acts as a barrier to obtaining further credit. This is exactly the market for which our products have been developed and we’re looking forward to working with the StepChange Financial Solutions team over the coming months.”
Tom Moloney, financial advice manager at StepChange, said: “Not all credit related problems are current ones and we frequently come across clients who are prevented from obtaining credit because of an historical issue, rather than any ongoing financial difficulties today.
“I really like Magellan’s responsible approach to this market and the way in which it is willing to give borrowers a second chance, provided they can explain and document the reasons for their financial difficulties and can demonstrate they have not incurred any new adverse credit during the last 12 months.”
Which? Mortgage Advisers recently added Magellan to its panel.
Earlier this year Snape suggested that defaulting borrowers should be sent on a “financial awareness course”, instead of being given a CCJ.