UK specialist lender, Bluestone Mortgages released their financial results to June, 2019 today, reporting a sharp increase in originations of residential mortgages. The business wrote over £250m loans in the financial year, a 264% increase compared to 2018.
The lift in volumes was supported by further platform growth, with headcount in the business increasing 58% to 49 and a new office opening in Sheffield to support the London operation. Net losses reduced 37% to £2.42m, and the business is on track to report a maiden profit this year. Headline gross margins held steady at over 4%, and 30 day arrears remain less than 1% of the book.
Bluestone Mortgages is the residential lending subsidiary of diversified financial services business Bluestone Group, which is headquartered in Cambridge in the UK.
Commenting on the strong set of numbers, Bluestone’s Founder and Group Chairman, Alistair Jeffery said:
“The 2019 financial year has been an enormously important one for our mortgage business, with a very solid lift in new loan levels supported by strong growth in our sales, lending and servicing operations. Despite Brexit headwinds, the strong growth is continuing into FY19, with 105% year on year growth in settlement volumes in the first quarter”.
Bluestone Mortgages Managing Director, Steve Seal commented:
“We’re delighted with the strong lift in volumes, driven in large part by the support of our broker network and their adoption of our uniquely flexible mortgage products, the continued development of Bluelink, our proprietary loan application platform and a relentless focus on service levels”.
New loans are being funded by a combination of warehouse lines from Bluestone’s funding banks, Macquarie and National Australia Bank, and forward flow sales to one of the UK’s leading challenger banks. Bluestone Mortgages recently completed its inaugural securitisation of mortgages in the £225m Genesis 2019-1 transaction, jointly arranged by Macquarie Bank and National Australia Bank.