Adverse Credit Criteria: What Bluestone Accepts
Bluestone Mortgages will consider applications from borrowers with a range of adverse credit events. CCJs — both satisfied and unsatisfied — are considered subject to their age and total value. Registered defaults, whether settled or outstanding, are assessed on a sliding scale based on how recently they were registered and the amounts involved.
Borrowers who have been through an individual voluntary arrangement (IVA) are considered by Bluestone, provided the IVA has been satisfied and sufficient time has elapsed since satisfaction. Discharged bankruptcies may also be considered depending on the discharge date. This willingness to look beyond a simple credit score to the substance of the borrower's current financial position is central to Bluestone's proposition.
Mortgage arrears — including historic arrears on a previous mortgage — are assessed case by case. The lender distinguishes between borrowers who experienced a one-off financial shock and those with a consistent pattern of financial mismanagement. Recent, up-to-date mortgage payments are particularly important, as the existing first charge lender's account conduct is one of the most scrutinised elements of any second charge application.
Second Charge Mortgages with Bluestone
Bluestone's second charge mortgage products sit alongside its residential first charge offering and share the same philosophy of accessible lending for adverse credit borrowers. Products are available on repayment terms, with loan amounts and LTVs calibrated to the risk profile of each case. The lender sets maximum combined LTVs that reflect the additional risk of adverse credit, typically lower than those offered to prime borrowers.
Rates are higher than mainstream lenders but competitive within the adverse credit segment. Bluestone often emerges as one of the better-priced options for moderate adverse borrowers — those with one or two settled adverse entries and a reasonable credit profile since — versus severe adverse lenders whose rates are considerably more expensive. Broker comparison is essential to confirm whether Bluestone is the optimal choice for your specific credit profile.
Self-employed income and complex income structures are accepted. Bluestone recognises that financial difficulties are sometimes linked to self-employment or irregular income, and its underwriters take a sensible view of income assessment for borrowers who can demonstrate a viable current trading position.
