Shawbrook Bank has strengthened its position in the residential and buy-to-let (BTL) markets with the acquisition of specialist intermediary mortgage business, The Mortgage Lender (TML).
Shawbrook, a specialist lender to UK small and medium-sized enterprises (SMEs), has agreed to acquire TML in a strategic purchase that provides the Bank with substantial growth opportunities.
The acquisition, which has regulatory approval, will extend Shawbrook’s property finance product range and increase its distribution network. Completion is expected to occur this month.
John Eastgate, managing director of Shawbrook Property Finance, comments: “The acquisition of TML is an exciting opportunity for both organisations. It positions Shawbrook in front of a much wider intermediary audience and reinforces TML’s growth plans with the strength of a retail savings franchise.”
“It will also allow us to maximise the benefits of our substantial investment in digital and enhance our offering to intermediaries.”
According to Eastgate, the acquisition is a natural extension of the relationship between Shawbrook and TML. “The combination of the two businesses creates an even more powerful force in the specialist lending market,” he adds. “The breadth of the product range and strong digital capabilities makes the Group relevant to effectively all mortgage intermediaries in the UK.”
The Mortgage Lender provides products and criteria that meet the needs of borrowers who are not served by the high street. In October, the lender announced it had finished the third quarter with a record increase in BTL applications and completions.
Peter Beaumont, chief executive of TML, says: “The deal is great news for TML, our broker partners and borrowers. We’ve worked closely with Shawbrook Bank for the last three years, and this is a progression of that partnership and a great strategic and cultural fit for both businesses.”
“It will underpin our growth and the expansion of our proposition. The backing of an established retail savings franchise provides us with the security that will help us to grow, and to challenge the larger players.”
“But it’s very much business as usual. We will be retaining our brand and will be a separate regulated entity, however, we will soon begin to leverage from all Shawbrook has to offer to make our business stronger and more successful,” he concludes.