Shawbrook Bank has agreed to purchase specialist intermediary mortgage business, The Mortgage Lender (TML).
TML will retain its brand, while Shawbrook said the enlarged group will focus on the creation of a best in class offering for intermediaries, underpinned by Shawbrook’s retail franchise and commitment to technology.
The move is subject to regulatory approval, though it’s expected to go through as early as February 2021.
John Eastgate, managing director of Shawbrook Property Finance, said: “The acquisition of TML is 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. 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 breadth of the product range and strong digital capabilities makes the group relevant to effectively all mortgage intermediaries in the UK.”
The full acquisition of TML follows Shawbrook taking a minority share in the business in 2018.
Peter Beaumont, chief executive of TML, 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, 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.”
This post has originally been featured in Property Wire.