The specialist lender said the results followed investment in proactive borrower support alongside an expansion of its lending capacity through several institutional funding lines.
Bluestone has expanded its acceptable County Court Judgements (CCJs) criteria, making it more likely for customers to qualify for a better mortgage rate.
Losses given default on secured loans decreased in Q3 and are also expected to increase slightly in Q4.
Effective immediately, the lender will exclude utilities and communications accounts from its arrears rules.
According to recent findings, over 492,000 mortgage-holders are set to miss a payment in the next six months.
Lloyds Banking Group warned that the cost of living crisis could result in higher defaults on its loans as it posted a 14% drop in quarterly profits.