We will support clients through credit policy not increased LTVs – Bluestone

Speaking to Specialist Lending Solutions, managing director Steve Seal (pictured) said Bluestone remained “reasonably cautious” on maximum LTVs since raising its limit to 85 per cent in November.  

He said the lender’s position in the market was well placed compared to its peers and added: “I would be surprised if we went above 85 per cent LTV but never say never.” 

Seal also said there was no option for Bluestone to lend up to 95 per cent LTV through the government–backed mortgage guarantee scheme but praised the initiative. 

“It is not necessarily helpful for lenders like Bluestone because if you dig into the detail of it, customers can not have any adverse credit in the background to qualify for it.  

“For a lender like Bluestone who’s willing to support those who have had financial difficulties during the pandemic, unfortunately they wouldn’t qualify,” he added. 

Seal said the lender was willing to adjust its credit policy to help affected borrowers instead, as well as expand its offering to new markets. 

He added: “Credit policy is an opportunity for specialist lenders to be more flexible. We are very passionate about continuing to grow business and continuing to increase the amount of customers that we can support.  

“So not only will there be changes from a credit policy perspective, you’ll see product innovation as we look to extend the reach of products we have available to borrowers in the market.” 

Adviser awareness 

Seal said the expectation that more people would have adverse credit following the pandemic meant advisers needed to be familiar with the help offered to borrowers who cannot get a mortgage on the high street. 

He added: “There’s a real opportunity for brokers generally to make sure they are aware of lenders like Bluestone and specialist lenders across the marketplace, so they know of solutions available to customers.  

“And they should take the opportunity, if they haven’t been exposed to or utilised [specialist lenders] in the past, to get really comfortable with them. The direction of traffic is only going to be one way in terms of the amount of customers who need that support.”