Shawbrook acquires The Mortgage Lender
Peter Beaumont: ‘great news’
Shawbrook Bank has acquired Scotland-based The Mortgage Lender for an undisclosed sum, expanding its market share in the residential and buy-to-let markets.
The deal provides TML with balance sheet funding for its existing specialist, intermediary-only mortgages alongside the ability to expand its product range in the future.
Shawbrook, which took a minority share in the Glasgow business in 2018, has confirmed that the TML brand will be retained.
The Mortgage Lender was formed in 2015 by Trevor Pothecary, a former chief executive of Mortgages Plc. The management team is headed by chief executive Peter Beaumont, who was also on the board of Mortgages plc, and Keith Street, former head of Kensington Mortgages, who is chief commercial director.
The deal is the second major transaction in 18 months in the specialist lending market following the merger of OneSavings Bank and Charter Court, parent company of Precise Mortgages, in October 2019.
Mr Beaumont said: “The deal is great news for TML, our broker partners and borrowers. We’ve worked closely with Shawbrook Bank for the last three years, it’s a progression of that partnership and a great strategic and cultural fit for both businesses.
“It provides the strength of a retail funded bank for our buy-to-let and residential propositions together with the ability to expand our product range in the future.
“It’s very much business as usual. We are retaining our brand, will operate as a separately regulated entity and are recruiting to support existing borrowers and increased lending volumes.
“We will also be investing in the business to accelerate our digital transformation and build on our success as an originator in the specialist intermediary-only mortgage market.”
Shawbrook CEO, Ian Cowie, added: “The acquisition is an exciting and unique opportunity for both Shawbrook and TML, and will help to drive further growth in our property finance franchise.
Mr Pothecary, added: “I am proud the company I envisaged over six years ago has grown into a thriving specialist mortgage lender. We are delighted to become part of Shawbrook Bank which marks the next chapter in our growth and is an exciting time for our team, intermediary partners and customers.”