Australia-based Bluestone Mortgages launches in UK

Australia-based Bluestone Mortgages launches in UK

Specialist lender Bluestone Mortgages has become the latest entrant to the UK mortgage market, with products that will cater for people with adverse credit.

Matt Andrews, managing director, Bluestone Mortgages, said: “We want to help close the gap in the market by providing affordable mortgage solutions that take into account an applicant’s full history and personal circumstances, looking at the person, not the credit score points assessed by typical lenders.”

The lender is part of Australian Bluestone Group, founded in 2000.

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Its products for people with adverse credit include, 80 per cent LTV, two-year fixes available at 6.74 per cent and three-year fixes at 7.11 per cent for the employed and contractors for purchases and remortgages in a credit category of AA.

For those in the clear category (with no adverse credit rating), at 80 per cent LTV, two-year fixes would be 5.48 per cent and 5.69 per cent for three-year fixes.

Meanwhile, the rates applicable for self-employed purchases and remortgage in a credit rating of AA for a two-year fix at 80 per cent LTV are 6.74 per cent and 7.11 per cent for a three-year fix.

For those self-employed in the clear category, the rates applicable for purchases and remortgages on an LTV of 80 per cent would be 5.48 per cent for a two-year fix and 5.69 per cent for a three-year fix.

Key fees

■ Arrangement fee on all mortgages is £1495.

■ Valuation fees for a property between £150,001 and £200,000 are:

- £380 for a valuation report

- £680 for a valuation report and a homebuyer’s report

- £1010 for a valuation report and a building survey

■ There is a non-refundable assessment fee of £180.

Source: Bluestone

The company is just one of several that have entered the UK mortgage market in the past few years, including Carrington Mortgages which expanded into the UK from the US last March, and TSB which launched in September 2013.

UK Mortgages also launched in July, while specialist lender Kensington Mortgages is launching New Street Mortgages, and Pepper UK came on board in January.

Adviser view

Paul Williams, director of Denbighshire-based Commodore Finance, said: “These lenders are entering into pre-2009 where risks are much higher and they are offsetting risks. It’s quite typical of the industry.

“Magellan, for example, will give a rate of 6.45 per cent, while Aldermore does 4.3 per cent. While these lenders are coming into the marketplace and do have a position where some clients are suited, the intermediary needs to scour the market as Aldermore also looks at adverse profiles. .”