Non-bank mortgage lender Bluestone, which recently re-entered the Australian mortgage market after pulling out during the GFC, has marked its return by cutting interest rates across its flagship products.
General manager Peter Wood told Australian Broker
Bluestone has already received positive feedback from brokers since the proposition was launched on Wednesday.
Clean Slate – for applicants who can provide full income details – now has an entry point interest rate of 6.74%, down from 7.04%, while Lite Blue – for self-employed applicants – has gone to 6.94% from 7.34%.
Bluestone, after expanding into the UK, re-entered the Australian market in the second half of last year. The lender pulled out after the 2008 GFC shut down the syndicated funding system used by non-banks in Australia and New Zealand.
“Because of the GFC, we weren't able to lend due to funding restrictions, like many other banks or non-bank lenders. Now that the capital markets have freed up, the proposition is certainly attractive again,” Wood said.
The company resumed lending in Australia after obtaining an initial warehousing facility from Macquarie
Over the past year, Wood said Bluestone has sought input from brokers on its products, market proposition and pricing.
“We’ve taken that all on board and come up with an offering that we think is very palatable,” said Wood.
The company is also launching a tool called Quick Quote in coming months, a free calculator brokers can use to confirm quickly whether the borrower will meet Bluestone criteria, said Wood.
“Our plan is to release products and technology onto the market on a regular basis, and we're working on some technology now… A key part of our business is to make sure we keep providing for the broker distributor network.”
Bluestone’s market re-entry via its addition to aggregator panels offers an opportunity to broaden its customer base, Wood said.
“This market pre-2008 was pretty competitive, worth probably $4bn to $5bn per annum, and so we're excited about the opportunities in the market, moving forward.
“There’s been re-education in the market and understanding these products are very compliant, so there should be no reason why a broker should steer away from these types of loans when providing a solution to their borrowers.
There is room for brokers to significantly grow their business by broadening the depth of their products across the borrower market, Wood said. “It’s a key opportunity in the market this year.”