Magellan cut its rates to 5.42% in February and over the course of the past month it has experienced a 400% increase in DIPs and 500% increase in enquiries.
There has also been an uplift in the number of customers finding a way to contact Magellan direct to learn more about its unique credit repair proposition.
Mark Snape, managing director lending at Magellan Homeloans, said: “The response from brokers and borrowers has been fantastic and confirms that there is significant demand for the type of credit repair product we’re offering.
“I would like to thank our Intermediary partners for their tremendous support and I look forward to seeing the numbers increase again as word spreads about Magellan. As our team continues to grow we have the capacity to cope with a lot more business.”
Rob Jupp, chief executive of Brightstar Financial, said: “Borrowers with historical adverse credit records have been marginalised for far too long and Magellan provides a cost-effective way for them to obtain mortgage finance once again.
“An added benefit of Magellan’s credit repair deal is that there are no early redemption charges, so borrowers are free to move their mortgages at any time without penalty.
“Magellan doesn’t use credit scoring and underwrites each case individually and we’ve found their service to be excellent. Brokers should view credit repair as an important part of their mortgage product offering.”
Magellan’s products are available via a panel of leading mortgage networks including Sesame, Intrinsic, IN Partnership, Pink Home Loans, First Complete, Homeloan Partnership, Mortgage Advice Bureau and The Whitechurch Network.
Snape added: “Thousands of borrowers have suffered a one-off life event such as redundancy, divorce or illness which has temporarily led to financial difficulties, but most get back-on track again fairly quickly and we believe they deserve a second chance.
“Our credit repair products enable borrowers who can demonstrate that they have maintained a clean credit record for 12 months to get back on the housing ladder straightaway.”