The non-bank lender has replaced its entire product suite with four products and announced its official move into prime lending.
Bluestone has today (6 November) replaced its entire product suite with a “streamlined” offering of four product streams and broken out of its traditional segment of specialist lending by launching a new product stream aimed at prime borrowers.
As such, Bluestone will now have four product streams: Prime, Near Prime, Specialist and Specialist+.
The new prime product suite for mainstream borrowers includes fixed rate loans starting from 2.99 per cent, alt doc options, and no risk fees or lender’s mortgage insurance (LMI) on full doc loans.
Bluestone revealed that the new product streams will include “a number of features designed to appeal to borrowers who are looking for a more flexible solution than many banks can provide”, such as simpler documentation requirements for self-employed borrowers, a wider range of accepted income streams (including child support, overtime and commissions [however, conditions apply]), and no automated credit scoring.
Speaking of the move into prime lending, Bluestone CEO Campbell Smyth commented: “This is the evolution of Bluestone as a lender. We have been operating in the near-prime space for a number of years and, over this time, we’ve seen an increase in clear credit borrowers, thanks to the tightening lending criteria of the banks.
“Moving into prime means we now offer home loan solutions for the full spectrum of borrowers and increase our relevance in this changing market,” he said.
Bluestone will continue to cater to non-conforming and credit-impaired borrowers with its Specialist and Specialist+ products.
The lender said that the new product streams have been “designed with simplicity in mind” and to enable brokers to “effortlessly find the right solution for borrowers in various financial and employment circumstances”.
It added that, while its products would be changing, it would continue to offer “a more individualised approach to assessment” and “[be] focused on providing a smooth experience for brokers and customers alike, from application to settlement and beyond”.
“By offering a wide range of products to suit varying personal and financial circumstances, we aim to support more borrowers across the lifetime of their loan,” Mr Smyth concluded.
The overhaul of the products offered and move into prime lending come hot on the heels of the appointment of Bluestone’s first chief customer officer.
Last week, Bluestone announced that its head of sales Royden D’Vaz had left his role as head of sales after five years of service with the non-bank, with his responsibilities assumed by its new chief customer officer, James Angus, who was Macquarie Bank’s former co-head of personal banking intermediaries.
[Related: Rise of the non-banks]