Remortgaging From Bluestone Mortgages

Why People Remortgage From Bluestone Mortgages

Bluestone borrowers commonly consider remortgaging when:

• Their credit has recovered — Bluestone is designed as a stepping stone for borrowers rebuilding their finances. Once you have reached a certain level of recovery, cheaper options become available
• The SVR is too expensive — Bluestone's revert rate typically exceeds 8.5%, adding a substantial premium to monthly costs
• Bankruptcy has been discharged — after a bankruptcy discharge and sufficient time, many mainstream lenders will consider your application
• Equity has built up — property price growth and mortgage repayments increase your equity, improving your loan-to-value ratio and unlocking better rates

Bluestone itself positions its products as a bridge back to mainstream lending. Taking that next step when you are ready is exactly what they expect their customers to do.

Bluestone Mortgages Rates vs Mainstream Lenders

Bluestone's rates are set to reflect the near-prime risk profile of their borrowers. Their initial fixed rates tend to be 2% to 3.5% above mainstream equivalents, while their SVR sits at around 8.5% to 9.5%.

For a borrower with a £160,000 mortgage, moving from Bluestone's SVR of 9% to a mainstream five-year fix at 4.5% could save approximately £350 per month. Over the five-year term, that adds up to £21,000 in savings.

Bluestone's value lies in the access they provide when other doors are closed. But once those doors reopen, the financial case for switching is compelling.

How to Remortgage From Bluestone Mortgages

Remortgaging from Bluestone follows a well-established process:

• Review your credit trajectory — look at how your credit score has improved since taking your Bluestone mortgage and check that any old adverse entries have been updated or removed
• Request your redemption statement — this confirms your outstanding balance and any charges for repaying early
• Get professional advice — a mortgage broker can assess whether you now qualify for mainstream, near-prime or improved specialist rates
• Submit your application — your chosen lender will underwrite the case, conduct a property valuation and issue an offer
• Complete the switch — conveyancing solicitors manage the legal transfer between lenders

The process typically takes four to eight weeks, though early preparation can smooth out any unexpected delays.

When Is the Right Time to Switch From Bluestone

Bluestone is designed as a transitional product, so knowing when to move on is part of the plan:

When your initial rate ends — dropping onto Bluestone's SVR triggers a sharp increase in your monthly payments. This is the clearest signal to explore alternatives.

After three years of clean credit — some near-prime and specialist lenders offer significantly better rates once you can demonstrate three years without any missed payments or new adverse entries.

Once adverse markers have dropped off — the six-year rule means that old CCJs, defaults and missed payments will eventually disappear from your credit file, opening mainstream doors.

If your LTV has dropped below 75% — this threshold is a sweet spot for many mainstream lenders, unlocking their most competitive rate tiers.

Why Using a Broker Helps When Leaving Bluestone

The transition from near-prime to mainstream lending is not always black and white. Your credit may have improved substantially but still carry some marks that concern certain lenders while being acceptable to others.

A broker who regularly handles this type of transition will know which mainstream lenders have the most flexible criteria for former adverse credit borrowers. They can also identify near-prime alternatives that sit between Bluestone and the high street in terms of both pricing and criteria.

This graduated approach means you might move from Bluestone to a cheaper near-prime lender now, and then to a fully mainstream deal in two or three years — saving money at every stage of your credit recovery journey.