Shawbrook announces agreement to acquire Bluestone Mortgages
Shawbrook has today announced the acquisition of specialist lender Bluestone Mortgages (BML) in a cash and share deal.
Launched in 2014, BML is a well-established brand in the UK specialist residential mortgage market. Working with a large network of brokers, BML supports customers which don’t fit the traditional profile of high street banks.
The specialist mortgage market is expected to grow substantially over the long term, driven by increasing numbers of people choosing to work for themselves or in sectors where incomes are complex. With both Bluestone Mortgages and The Mortgage Lender brands, powered by Shawbrook’s capital base and significant presence in the deposits market, the combined Group is very well placed to meet this growing demand.
Bluestone Mortgages has originated over £1.8bn since its launch, and currently manages a book of over £1.3bn residential loans. The growth of the business has been supported by an experienced team which today stands at c.90 employees based in offices across London and Sheffield.
Shawbrook has been working with BML since 2017 through a platform lending arrangement. With BML being part of the Shawbrook Group, the bank is able to offer the specialist lender greater stability in funding to continue powering their impressive growth trajectory.
The two organisations also share an approach to providing specialist finance at scale, which combines technology and data with the expertise and judgement of their people. This ‘best of both’ model is key to delivering a seamless digital experience with swift decision making and certainty of funding.
Bluestone Mortgages has built a strong reputation in the intermediary market and was ranked number one in the Mortgage Lender Benchmark, a league table of lenders, and awarded the title of the UK’s Best Adverse Credit Lender.
Marcelino Castrillo, the Group’s Chief Executive Officer, commented:
"We are delighted to have strengthened our long-standing and successful partnership with Bluestone Mortgages through this acquisition. Bluestone Mortgages is a well-established brand in the UK specialist residential mortgage market, and by bringing the two organisations together, we can use our combined capabilities and scale to offer an even stronger proposition to UK homeowners. Driven by increasing numbers of people choosing to work for themselves or in sectors where incomes are complex, we anticipate significant long-term growth in the specialist mortgage market. With both Bluestone Mortgages and The Mortgage Lender brands combined with Shawbrook’s strong and stable balance sheet, the Group is very well placed to consistently meet this growing demand.”
Steve Seal, Bluestone Mortgages’ Chief Executive Officer, commented:
“This transaction is great news for Bluestone Mortgages, our intermediary partners and our customers. Shawbrook has been a long standing strategic partner for many years and joining the Shawbrook Group is a natural step as we continue to grow and develop the business.
We have exciting growth plans and the support available from Shawbrook will help to accelerate these, enabling BML to provide innovative lending solutions."