The lender will accept applications from clients who have recently taken a payday loan, providing it has been cleared on completion. Previously Bluestone required that no new loans be taken out over the last 12 months.
These updates, which are available to all mortgage brokers, will help customers who have been misinformed about the ramifications of taking out a payday loan, or those who have had to take out a payday loan due to a recent life event.
A spokesperson told Mortgage Solutions: “There are a number of pitfalls customers find themselves dealing with, however the main ones tend to be they struggle to find a lender, or they require a higher deposit.
“We have made a number of policy exceptions where applications had taken payday loans and not realised the ramifications it could have on getting a mortgage. The main problem arises with misinformed customers, especially due to the rise of buy now pay later, as payday loans can often get confused.
“We have therefore recently updated our product range to include a fee-free product, helping clients with any upfront costs. We’ve also introduced a £500 solicitor contribution for those looking to remortgage. Moving forward, we’re looking to launch a new first-time buyer proposition.”
Reece Beddall, sales and marketing director at Bluestone Mortgages (pictured), added: “We believe that previous financial difficulties should not exclude anyone from owning their dream home.
“Ultimately, these changes will provide our customers with greater choice and give them the helping hand they deserve.”
