This restriction in business comes days after the lender capped lending at 75 per cent loan to value and began declining applications from borrowers working in the leisure, hospitality and retail industries.
The lender said the decision to halt new applications has been made as a result of restrictions that have been put on physical property valuations due to the Covid-19 pandemic.
Bluestone will prioritise existing applications where the valuation has already been completed. All other applications will be processed and underwritten as normal, while they wait for the availability of an acceptable valuation.
All offered mortgage loans will continue to completion as normal.
Bluestone said its existing customers will not be affected by the suspension and the lender’s support services will remain open for these borrowers.
During this time, the lender will reallocate employees to other customer support teams so they can offer more help to existing borrowers.
Steve Seal, managing director at Bluestone Mortgages, said the staff moves were necessary in supporting customers through the crisis and the overall decision to stop accepting applications was not taken lightly.
He added: “Overall, our main priority is supporting brokers in every way we can so that they can continue to deliver strong outcomes for customers and to reassure them they are in safe hands.
“Bluestone will continue to follow the government guidelines and hope to re-open to new business as soon as possible and will update the market on news of this in due course.”