Ranges that will be affected by the reduction are Bluestone’s Clear, AAA and AA credit categories. The LTV cap will only be in place for a short period of time.
The restriction will allow underwriting and service teams to spend more time to processing the existing pipeline of applications, said Bluestone.
The lender has reported increased demand over the last eight months, with sales and lending growing by 70 per cent.
In its latest financial report, released in February, the lender reported profits for the year ended 30 June 2020 of around £2.1m, up from a loss of around £2.9m in 2019.
Bluestone Mortgages sales and marketing director Reece Beddall said: “After experiencing such high demand for our products over recent months, we’ve taken this important step to ensure that we can provide a first-rate service to our brokers and end-customers.
“With the added support of our increased headcount, we will be in a much stronger position to support underserved borrowers in the weeks to come and provide them with high-quality solutions and service that cater to their needs,” he added.
