Bluestone has reiterated its strong support for brokers despite its decision to temporarily withdraw its reverse mortgage products from the channel.
Speaking with Mortgage Business today, chief executive of Bluestone Peter McGuinness said the lender wished to be “very, very clear” of its ongoing commitment to brokers.
“Brokers have long been a major supporter of Bluestone and they remain a major distribution partner,” he said.
While Bluestone’s Equity Tap reverse mortgages will still be available through its alliance partners, Mr McGuinness emphasised that this had nothing to do with the value of the different distribution channels.
“This is simply a funding issue,” Mr McGuinness said.
Bluestone is able to distribute its products through alliance partners – such as Westpac and Cuscal – because of the different funding structures used through these partners, Mr McGuinness explained.
Some of these partners contribute their own funding to the products, which mean the dependence on Bluestone’s funding is minimal.
Mr McGuinness also emphasised that the decision was only temporary.
“The current cost of funds has made the product uneconomical and uncompetitive. However, we are intent on bringing it back to the broker channel when that is possible,” Mr McGuinness said.
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