Bluestone Mortgages

Bluestone Mortgages is a specialist UK mortgage lender for people whose circumstances the high street has already turned down. It describes its lending as mortgages for complex credit, supporting cases that high street lenders may have declined previously, and says it lends to customers who are being let down by high street banks¹. Its range covers first-time buyer, new home, remortgage and Right to Buy products³.

The single most important thing to know is that you cannot apply to Bluestone yourself. It arranges mortgages only through qualified mortgage advisers, and says it does not handle direct customer enquiries¹. Everything else follows from that: an adviser checks your circumstances, submits the application, and stays your point of contact.

Bluestone is a specialist mortgage lender that lends only through mortgage advisers, and it is known for accepting applications from borrowers whose circumstances fall outside mainstream criteria, including self-employed customers with just one year's trading history¹. It is part of Shawbrook Group, and its sister brand The Mortgage Lender also lends only through advisers⁵. For existing customers, it offers product transfers with a choice of fixed and variable-rate products, where the fixed products are 2 year, 3 year and 5 year products³.

What Bluestone Mortgages offers: mortgages for complex credit

Bluestone's proposition is narrow and deliberate. It lends to people whose credit history or income pattern does not fit a high street scorecard, and it says it takes the time to understand and explain its decisions rather than issuing an automated yes or no². Its published product range is first-time buyer, new home, remortgage and Right to Buy³.

The first-time buyer range accepts CCJs, arrears and defaults, and ignores all telecom and utility bill CCJs or defaults under £500³. The remortgage range accepts debt management plans³. Those are the two features that most distinguish it from a mainstream lender, and they are the reason most people arrive at this page.

It is worth being clear about what this kind of lending is. Bad credit mortgages, adverse credit mortgages and sub-prime mortgages are the names used across the market for products aimed at borrowers with a damaged credit history⁸. Bluestone is one lender in that market, not the only one, and an adviser will usually be able to say which lenders are likely to consider a given set of circumstances.

Bluestone does not publish its rates on this page, and rates change. Its own site carries the current product range and the tariff of charges, which contains full details of the fees it charges before and during the term of the mortgage⁷. For how this type of borrowing fits into the wider market, see Mortgages: a complete guide.

Who can get a Bluestone mortgage

Bluestone's own summary of who it helps is people with CCJs, borrowers with non-traditional income, first-time buyers with low credit scores, and Right to Buy applicants¹. Beyond that, eligibility is assessed case by case, which is the point of the model.

Some general rules apply to anyone borrowing for a home, whatever the lender. A deposit is normally required, and self-employed applicants are usually asked for at least 10 per cent of the purchase price⁹. Lenders will typically lend up to four-and-a-half times annual household income for applicants who meet their criteria, though this varies between lenders⁹. Those are market norms rather than Bluestone's own terms; an adviser will confirm what applies to you.

There is no such thing as a self-employed mortgage as a separate product category: self-employed buyers apply for the same mortgage products as employed homebuyers⁹. What differs is the evidence of income the lender wants to see.

If your circumstances include a disability, a long-term health condition or caring responsibilities, the same lending rules apply, but the income evidence and the affordability assessment may need more explanation. Scope publishes guidance on mortgages for disabled buyers, and Carers UK covers the benefits side for carers in Scotland¹⁰. For the wider picture on how lenders assess applications, see Buying a home: a complete guide.

Bluestone decides on circumstances, not a credit score

Bluestone states plainly that it does not credit score, and that it makes decisions based on your circumstances³. It says it bases decisions on your personal circumstances and credit history, taking the time to understand and explain its decisions².

In practice that means a human being looks at what went wrong and when, rather than a system returning a number. A default from several years ago that has since been satisfied is a different proposition from arrears that are still running, and a lender assessing circumstances can tell the difference. It also means the application takes longer and depends more heavily on how well your adviser presents it.

This is not the same as a guarantee. Bluestone still checks affordability, and it still declines cases. What it offers is a route for people whose file would be filtered out before anyone read it.

One consequence worth knowing: because the decision rests on circumstances, the supporting documents matter more, not less. Bank statements, evidence of income and an explanation of any adverse credit all feed into the assessment. Which? sets out what lenders generally ask for during a mortgage application¹².

Self-employed and contractor applicants

Bluestone says it can help self-employed customers with just one year's trading history, describing this as a common sense approach². It accepts accountant's certificates, accounts or SA302s as proof of income for self-employed customers².

For contractors, it reviews applications individually, including customers on fixed-term or rolling contracts with less than 52 weeks a year, no payslips or no contracting history². Those are exactly the profiles that trip a standard affordability calculator.

The wider market is stricter. Some lenders will accept two SA302 forms, and self-employed applicants are generally asked for details of tax assessments and accounts covering the last three years, including the current tax year¹³. Where a lender will look at less, that is a meaningful difference for someone in their first year of trading.

If you are newly self-employed, the practical preparation is the same whoever you apply to: keep your tax returns and accounts current, and be ready to explain the pattern of your income rather than just its total. For how income is assessed more generally, see Credit scores and credit reports: a complete guide.

Right to Buy mortgages with Bluestone

Bluestone offers Right to Buy on selected products, and describes the scheme as an opportunity for council tenants to buy their homes at a discounted price³.

The scheme itself is a government one, and the rules sit with the government rather than the lender. Right to Buy lets eligible tenants buy their home at a price lower than the full market value¹⁴. The property must be your only or main home and must be self-contained, and eligibility also requires having no legal issues with debt, no outstanding possession orders and no history of tenancy fraud¹⁵. Buyers have access to the same mortgage products available on the market as everyone else¹⁵.

That last point matters: a Right to Buy purchase is not a separate mortgage market with its own rules. It is an ordinary mortgage secured on a home bought under the scheme, which is why a lender that accepts adverse credit can be relevant to a tenant whose credit file would otherwise block the purchase.

Right to Buy rules differ across the UK, and the scheme has changed over time in different nations. For how housing and money rules vary, see Money in Scotland, Wales and Northern Ireland: how the rules differ.

Applying only through a mortgage adviser

Bluestone does not take applications from the public. It arranges mortgages only through qualified mortgage advisers, and for existing customers it says it does not handle direct customer enquiries, so the broker is the route to help¹. Advisers can be found through directories such as unbiased.co.uk¹.

This is not unusual in specialist lending. The Mortgage Lender, Bluestone's sister brand, works the same way: it does not arrange mortgages directly with customers and says applicants need to consult a qualified mortgage adviser⁵. Across the market more broadly, you can apply for a mortgage direct to a building society or other lender, or use a mortgage broker, and some deals are available only through brokers¹⁶.

The practical sequence is:

1. Find a mortgage adviser, using a directory such as unbiased.co.uk or a broker you already know¹.
2. The adviser assesses your circumstances, including any adverse credit and your income evidence.
3. The adviser submits the application on your behalf.
4. Bluestone carries out basic checks and offers a selection of products⁴.
5. The adviser presents the options to you and handles the paperwork through to completion.

Switching deals as an existing customer

If you already have a Bluestone mortgage, you do not need to go back through an adviser to move onto a new deal with the same lender. Bluestone sends a letter ahead of time detailing how to switch to its product transfer range, and says you can switch to its new deals without any product fees⁴.

The product transfer range includes fixed and variable-rate products, with fixed products offered over 2, 3 and 5 years⁴. If you meet the eligibility criteria, you will not be required to provide any documentation⁴.

The eligibility criteria are specific⁴:

• You must be within 90 days of the rate expiry date, or already on Bluestone's standard variable rate.
• You must not be moving home or increasing your mortgage balance.
• You must not be seeking to add or remove a borrower.
• You must not be in arrears at the point of application.
• You must not have missed any payments within 12 months.

If you are on a fixed rate, the switch will not occur until your fixed rate period has come to an end⁴. Once you apply, Bluestone carries out basic checks and offers a selection of products⁴.

There is a wider rule here that helps borrowers generally. Customers who are up to date with payments can switch to a new mortgage deal with their lender at the end of their existing fixed-rate agreement without a new affordability check¹⁸. That protection does not extend to everyone: StepChange has warned that clients with mortgage arrears remain ineligible to move to a more affordable deal, either with their current lender or another provider¹⁹. If you have arrears, the product transfer route above is likely to be closed to you until they are cleared.

Early repayment charges, overpayments and redemption

An early repayment charge, usually shortened to ERC, is a fee for ending a mortgage early, such as redeeming in a three-year fixed deal after just one year, or paying a lump sum to reduce the mortgage balance⁷. Bluestone says it will walk you through the process to make sure you are aware of any ERC or restrictions on the maximum amount you can overpay each year, and that details of any ERC payable are in the mortgage offer⁷.

Two timing points catch people out. First, an ERC runs from the day your mortgage is completed, not when you receive your mortgage offer⁷. Second, the ERC is calculated and applied on the date the payment is received from you or your solicitor, not the date you decide to redeem⁷. If you are remortgaging to another lender, the money arrives when your solicitor sends it, and that is the date that counts.

Overpaying is not automatically free. Bluestone states that overpayments may incur an ERC or restrictions on the maximum amount you can overpay each year⁷. If you are planning to overpay, ask what your annual allowance is before you send the money, because the answer is in your own mortgage offer rather than in a general rule.

If you want to pay your mortgage in full, email customersupport@bluestonemortgages.co.uk and Bluestone will send a redemption statement showing the total amount to pay, including recent payments, interest charges, any ERC and other fees⁷. Remortgaging early often carries an early redemption fee, so it is worth comparing the fee against the saving before you move²⁰.

When your mortgage reaches the end of its term, Bluestone closes it automatically after your final payment and refunds any overpaid money⁷.

If you are struggling with repayments

Contact Bluestone before you miss a payment. It says it has a range of options, including repayment plans and interest-only payments, and that your credit rating will not be affected by contacting it²¹. If a Direct Debit has failed, it asks you to call or email as soon as possible to discuss your options, because a failed payment could impact your credit file⁷.

Lenders are expected to help. Guidance for consumers sets out that lenders should offer help if you are struggling to pay your mortgage, which could include reducing your monthly payments or taking a break from your payments for a few months²². The Financial Ombudsman Service can look at complaints about financial difficulties affecting your ability to repay your mortgage, including complaints about mortgage arrears and charges, not being able to change or move your mortgage or take a payment holiday, and complaints about repossession before possession takes place or after it has happened²³.

The Mortgage Charter sets standards that lenders adopt when helping residential mortgage borrowers who are worried about higher rates²⁴. It applies to residential mortgage borrowers²⁵. Separately, the Financial Ombudsman Service expects lenders to allow a customer to change the date of their monthly mortgage payment when they move to a new job with a changed salary payment date²⁶.

Where to get free help:

• Support for Mortgage Interest is a loan to help pay towards the interest on your mortgage repayments, available to homeowners entitled to certain benefits, including Pension Credit or Universal Credit²⁷.
• Breathing Space may be available if you are struggling to pay your mortgage and are in arrears²⁹.
• Help to Stay in Wales is for households having difficulty paying a mortgage, including those already missing payments or building up arrears, or at risk of missing payments because of a rate rise or loss of income³⁰.
• Shelter Cymru advises on arrears on a repayment mortgage³¹.
• StepChange offers free debt advice, and has found that over half of those struggling with credit repayments have been in difficulty for over six months³².

If your difficulty follows a job loss, StepChange covers redundancy specifically³³. If you are considering remortgaging to pay off other debts, be aware that this converts unsecured debt into debt secured on your home²⁰.

Complaints and how your mortgage is regulated

Bluestone has a published complaints process. If you are unhappy with its final response, you have the right to refer your complaint to the Financial Ombudsman Service free of charge, and you must do so within six months of the date of your final response letter³⁴. Complaints raised by a claims management company are treated as if you had raised them yourself, but the company may charge you a fee³⁴.

The ombudsman can consider complaints about mortgage interest rates once you have complained to the lender or mortgage intermediary and are unsatisfied, or after eight weeks without a reply³⁵. It also handles complaints about mortgage arrears and charges²³. In the first quarter of 2025/26 it opened 157 cases about buy-to-let mortgages, consumer or non-consumer³⁶.

Your mortgage paperwork must tell you how to complain to the firm and whether complaints may be referred to the Financial Ombudsman Service³⁷. Consumer buy-to-let mortgage complaints against registered firms fall within the ombudsman's compulsory jurisdiction³⁸.

If your complaint is about the Financial Conduct Authority rather than the lender, its own complaints scheme excludes complaints about its rules or guidance, about the firms it regulates, and about the actions or inactions of the Financial Ombudsman Service, the Financial Services Compensation Scheme or MoneyHelper³⁹. Citizens Advice explains how to check whether a financial service has followed the rules²².

Protection: what covers your money and what does not

Bluestone Mortgages is authorised by the Financial Conduct Authority, firm reference number 441255, with a status effective date of 1 June 2006⁶. Its current trading names are BML and Bluestone Mortgages, and it was previously known as Basinghall Finance, Basinghall Finance Plc and Basinghall Finance Limited⁶. The company is active on the Companies House register, company number 02305213, incorporated on 13 October 1988⁴⁰.

A mortgage is not a deposit, so the Financial Services Compensation Scheme's deposit protection does not apply to it. What protects a borrower is the framework of rules around lending and, if things go wrong, the Financial Ombudsman Service. If a firm fails, the mortgage itself does not disappear: the loan is an asset and is typically transferred or serviced by another firm, and you continue to make payments on the same terms.

Bluestone's customer support line is open Monday to Friday 9:00am to 5:30pm, and is closed on Saturdays, Sundays and bank holidays⁷. For bereavement, Bluestone asks to be notified of a death so it can stop letters and telephone calls until it receives the death certificate, and it requires the original death certificate or a certified copy, meaning a photocopy verified by a solicitor, bank employee, police officer, judge or other authorised person⁴¹.

On a joint mortgage, the mortgage will usually transfer to the name of the remaining owner, and Bluestone freezes the account for three months once it receives the death certificate, a period it calls a condolence grace period, during which it will not impact your credit file⁴¹. On a sole mortgage, Bluestone cancels the Direct Debit, which means the mortgage falls into arrears, and it does not expect payments for up to 12 months to allow time to obtain probate; the Financial Conduct Authority requires it to write and tell you when the mortgage falls into arrears, and once probate is in place the mortgage must be repaid⁴¹.

For how protection works across financial products, see Consumer protection in UK financial services: a complete guide.