The intermediary-only lender, which opened for business on Wednesday this week, intends to focus mainly on the residential mortgage market.
Matt Andrews, managing director of Bluestone Mortgages (pictured), said the product would not be targeted at portfolio landlords but investors looking to purchase one or two buy-to-let properties. He added that the lender was not looking to create a buy-to-let proposition.
On its residential mortgage range, Bluestone intends to target self-employed borrowers, customers with adverse credit and contractor workers.
Bluestone announced its pilot launch this week, offering its product range exclusively through network Tenet Group and Legal and General Mortgage Club.
Andrews said the lender wanted to ensure its products met the needs of intermediaries in the pilot phase of its launch.
Rates on Bluestone’s residential products begin at 4.78% for customers with a ‘clear’ credit history which does allow for a minimal amount of adverse credit history.
Loan-to-values (LTV) are available from 60% to 85% on fixed and variable rate products. Bluestone has taken a risk-based approach to product pricing, with rates intended to match the risk profile of the customer. It has set a lending target in the region of £50m to £100m.
Andrews added that by using improved technology the lender was looking to ‘empower’ brokers by offering them quicker decisions on mortgage approvals.
“We’re developing an online portal for brokers which will go live in two months and includes a feature that allows the intermediary to get a quick decision on whether their customer will be accepted or not,” Andrews said.
“Often the decision in principle (DIP) is declined by many lenders once the application has already been submitted. What we’ve done is build a step before the DIP which is a criteria check in 20 questions so the intermediary can understand whether their customer has been accepted and what products they qualify for.”
On proc fees, Andrews said Bluestone would pay a ‘fair and competitive’ rate at 0.5% which applies to both appointed representatives and directly authorised brokers.
Bluestone plans to expand its product range during the second half of 2016. It will roll out its offering to all adviser firms across the Legal and General and Tenet networks before Christmas and to a broader range of distributors within the first half of next year.