Following rate cuts by a number of mortgage lenders, non-bank player Bluestone Mortgages said yesterday it has cut its interest rates by 75 to 105 basis points across its Crystal Blue products.
The Crystal Blue portfolio includes a range of full and alt doc products that provide lending solutions to established self-employed borrowers (with greater than 24 months trading history), and PAYG borrowers with a clear credit history.
The lender expects the rate reduction, coupled with the 85% low doc option, to drive the uptake of the portfolio. It said its Crystal Blue offering aligns well with a maturing SME market and would resonate well with the growing number of established self-employed borrowers.
The rate cuts come shortly after the company was acquired by private equity firm Cerberus Capital Management. As Australian Broker reported last month, parent company Bluestone Group UK is fully divesting its interest in Bluestone Mortgages Asia Pacific as part of the acquisition deal.
“As expected, the Cerberus transaction is already enabling the company to actualise a number of imminent opportunities that address current market demands,” said Royden D’Vaz, head of sales and marketing at Bluestone Mortgages.
He said the rate reduction is the beginning of many initiatives the company will implement to enhance or expand its portfolio.
“Self-employed borrowers are becoming increasingly savvy and more open to alternative funding. The sector is also becoming more proactive about seeking advice about the common challenges of managing working capital and/or obtaining financing,” he said.
The lender urges brokers to diversify into specialist lending to help them create loyal customers in the self-employed sector.
“We encourage brokers to embrace specialist lending as part of their dealings and not leave revenue on the table,” said D’Vaz.