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Shawbrook buys The Mortgage Lender

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  • 28/01/2021
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Shawbrook buys The Mortgage Lender
Shawbrook Bank has agreed to buy fellow specialist lender The Mortgage Lender (TML), with the transaction due to complete next month.

 

The full acquisition of TML follows Shawbrook taking a minority share in the business in 2018, although the final cost has not been revealed.

Shawbrook said it intends to retain the TML brand and that it was “business as usual” for the firm.

It added that the main driver was to strengthen its position and distribution in the residential and buy-to-let markets.

“The acquisition, which has regulatory approval, will extend Shawbrook’s Property Finance product range and significantly increases its distribution network,” the bank said.

It added that it would be business as usual for TML with its growth plans reinforced through access to Shawbrook’s retail savings business.

The transaction is the second significant one 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.

 

‘Wider intermediary audience’

Shawbrook Property Finance managing director John Eastgate said the move was 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,” he said.

“It will also allow us to maximise the benefits of our substantial investment in digital and enhance our offering to intermediaries.

“The combination of the two businesses creates an even more powerful force in the specialist lending market.”

He added: “We have built an excellent relationship with TML management over the last three years.

“This acquisition is a natural extension of that relationship, and the experienced TML leadership team will strengthen our existing management as we enhance our presence in the specialist lending market.”

 

Progression of the partnership

TML chief executive Peter Beaumont said the deal was great news for the business.

“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,” he said.

“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.

“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.”

TML founder and chairman Trevor 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.”

 

 

 

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