Shawbrook has confirmed the acquisition of specialist lender Bluestone Mortgages in a cash and share deal.

Launched in 2014, Bluestone Mortgages works with a large network of brokers and supports customers which don’t fit the traditional profile of high street banks. The lender has originated over £1.8bn since its launch and currently manages a book of more than £1.3bn residential loans.

Shawbrook said it expects the specialist mortgage market 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 presence in the deposits market, Shawbrook stated that the combined group is “very well placed” to meet this growing demand.

Shawbrook has been working with Bluestone Mortgages since 2017 through a platform lending arrangement.

“We are delighted to have strengthened our longstanding and successful partnership with Bluestone Mortgages through this acquisition,” said Shawbrook CEO, Marcelino Castrillo.

“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.”

Bluestone Mortgages CEO, Steve Seal, added: “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 Bluestone Mortgages to provide innovative lending solutions.”

Share Story: