Magellan Homeloans has launched two new product ranges and cut its fixed rates pricing. 

The changes, which come into effect immediately, include two new pricing tiers, while fixed rates have been reduced by up to 0.5 percentage points.

Magellan offers rates from 3.10% and offer solutions for borrowers with historical adverse credit records, the self-employed with at least 12 months’ trading accounts, contractors and those receiving gifted deposits from close family.

Simon Read, managing director of Magellan Homeloans said: “We’ve been working hard to reduce our costs of funding and we’re pleased to be able to pass some onto borrowers.

“This competitive pricing alongside our straightforward manual approach to underwriting offers a serious alternative to the credit score models which intermediaries tell us can be frustrating as they offer little transparency of decision and make setting customer expectations difficult.”

Jason Neale, sales director at Magellan Homeloans, added: “The changes we’re announcing today are designed to tailor affordability to each borrower’s individual circumstances, whilst keeping the products competitive for advisers. We are committed to helping customers who are let down by credit score driven criteria.

“Providing intermediaries with great value products that are individually underwritten by skilled underwriters is always a key priority for us.”