Bluestone Mortgages is to focus on the owner-occupied mortgage market and has decided to withdraw from the buy-to-let sector.

It has notified its network of broker partners of its decision, closing to new buy-to-let applications from 11 August. Those applications already received will continue to be processed as normal.

The lender has reported that its owner-occupied residential mortgage volumes have almost doubled since its acquisition by Shawbrook earlier this year.

Bluestone has seen on average a 90% monthly increase in new business, supporting owner occupied customers who don’t fit the traditional lending criteria, including those with complex and adverse credit, as well as the self-employed and contractors.

Reece Beddall, sales and marketing director at Bluestone Mortgages, said: “With the current economic climate contributing to growth in the number of customers who no longer fit the mainstream lending profile, we are experiencing increased levels of demand.

“This is an exciting time for Bluestone and we’re fully committed to and focused on doubling-down our efforts to help would-be and existing borrowers who rely on our approach to realise their home ownership goals.”