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High street lenders should refer declined consumers to specialist market – Bluestone

  • 02/03/2020
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High street lenders should refer declined consumers to specialist market – Bluestone
High street lenders should introduce a “proactive referral process” to specialist lenders to support consumers who are turned away by mainstream mortgage providers, Bluestone has suggested.


Speaking to Mortgage Solutions, Steve Seal (pictured), managing director of the lender, said it was “terrible” that consumers who had been declined by mainstream providers were unaware that there were other options potentially available to them. 

“We need to get greater awareness from a consumer point of view or a proactive referral process from high street lenders into the specialist lending community,” he added. 


Supporting complex borrowers 

He said he felt the industry had a “moral obligation” to support customers with a complex or adverse credit history. 

Seal said: “All we’re doing is supporting customers who should not be disenfranchised. As long as it’s done in a responsible and appropriate way, understanding the circumstances, I think it will be a great thing for the market.” 

He also disputed a prediction made by Moody’s, which suggested the loan credit quality of new deals made by specialist lenders and challenger banks would be weaker than the mainstream as they targeted borrowers who required bespoke underwriting. 

“You won’t see any of that at Bluestone. We’re very focused on credit policy, very focused on credit performance. Every conversation I have with one of my peers is a reflection of that ethos.  

“It is about growing the market sustainably and responsibly underpinned by those responsible lending practices,” he added. 

He said: “We are not a lender who would lend to someone who wouldn’t pay a debt, we lend to people who couldn’t pay their debts. We can attribute the circumstances they present to us to an identifiable life event.” 

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