Blue Zest denied rumours it had stopped lending, adding this was down to a mis-communication and told Specialist Lending Solutions that after testing its products it was further refining its offer before launch.
“We launched in November and went in with three of the packagers to test products in the market to see if they actually work,” said Blue Zest chief executive Chris Slater.
“We learned that we needed to change some of our products – some are too different for the market to cope with.
“But we had other smaller brokers come to us and we told them very explicitly that we were not lending, and I think that’s where it’s got confused and that’s a bit of a blow,” he added.
Slater noted that some of the refinements involved sourcing other funding aside from its £1.5bn bond issue to ensure it could compete in the buy-to-let market.
“We’ve brought those forward because we were finding that with the bond we weren’t able to compete effectively at low loans-to-value on buy-to-let – so we’re making sure we’ve got other sources of funding available for that segment of the market so we can then go live with it sometime in the next couple of months,” he continued.
“So at the moment we’re tightening our products, processes and platforms and in the next few weeks we’re going to be firming up our start date for actually lending,” he added.