Shawbrook to acquire Bluestone Mortgages

Shawbrook said the specialist mortgage market was “expected to grow substantially over the long term”, adding that this was partially due to more people being self-employed or working in sectors with more complex income.

It said with the The Mortgage Lender and Bluestone Mortgages brands, along with its “capital base and significant presence in the deposits market”, the group was “well-placed to meet this growing demand”.

Bluestone Mortgages was founded in 2014 and operates in the specialist residential mortgage sector.

It has originated over £1.8bn since its launch, and currently has a residential loan book of £1.3bn.

The firm has circa 90 employees and is based across offices in London and Sheffield.

Shawbrook said it had worked with Bluestone Mortgage since 2017 via a platform lending arrangement, and as it was now part of the group it could offer “greater stability in funding to continue powering their impressive growth trajectory”.

Marcelino Castrillo, Shawbrook’s chief executive officer, said: “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.”

He added: “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, said: “This transaction is great news for Bluestone Mortgages, our intermediary partners and our customers. Shawbrook has been a longstanding 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 to the growing number of customers who will need the support of a specialist mortgage lender.”

Specialist lenders have caught the eyes of banks in recent months, with Barclays completing its acquisition of Kensington Mortgages earlier this month.

Brokers said the acquisition could signal the start of high street lenders diversifying into new markets.