Shawbrook Bank has announced the acquisition of specialist intermediary mortgage business The Mortgage Lender (TML) for an undisclosed fee.

The acquisition, which has regulatory approval, will extend Shawbrook’s Property Finance product range and significantly increase its distribution network.

Shawbrook, itself a specialist lender to UK SMEs, said the strategic purchase provides the bank with “substantial growth opportunities”.

“The acquisition of TML is an exciting opportunity for both organisations,” commented Shawbrook Property Finance managing director, John Eastgate.

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

“Shawbrook has long had an outstanding reputation with its intermediary partners and in a relatively short period, TML has achieved the same, creating a very strong brand that will remain in place.

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

The full acquisition of TML follows Shawbrook taking a minority share in the business in 2018.

“We have built an excellent relationship with TML management over the last three years,” Eastgate added.

“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.”

As part of the acquisition, TML will retain the brand that has helped it become recognised in the mortgage industry.

The specialist intermediary-only lender provides products and criteria that meet the needs of borrowers who are not served by the high street and in October, TML announced it had finished the third quarter with a record increase in BTL applications and completions.

“The deal is great news for TML, our broker partners and borrowers,” TML chief executive, Peter Beaumont, added. “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.

“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.”

Share Story: