Bluestone News

Bluestone Mortgages losses narrow, volumes surge


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.

For further information please contact:

Alistair Jeffery - Executive Chairman, Bluestone Group
T: +44 1223 454 610
M: +44 7500 839 400

Steve Seal - Managing Director, Bluestone Mortgages
T: +44 2037 431 589
M: +44 z7507 969 387