Bluestone to sell UK specialist mortgage business to Shawbrook
Bluestone Group is set to sell its UK mortgage lending and portfolio servicing operations to Shawbrook Group in a cash and shares transaction.
The deal is expected to close in Q2 2023 and the business will continue to trade under the Bluestone Mortgages (BML) brand with day-to-day operations to be led by existing management. Financial details of the transaction have not been disclosed.
Bluestone Group chair Alistair Jeffrey says that post-completion, the group will maintain its relationship with BML via its tech arm Fignum.
Fignum was established in 2019 to develop contemporary loan origination, servicing and receivables management solutions for the group’s other businesses, as well as external customers.
BML typically funds its originations via platform lending relationships with Shawbrook and other banks. The business has originated more than £1.8 billion since its launch in 2014 and currently manages a loan book worth more than £1.3 billion in residential loans.
BML CEO Steve Seal says the support now available from Shawbrook will help the firm accelerate its growth plans and develop new lending solutions for customers in need of a specialist mortgage lender.
“One element of our growth strategy is to leverage technology to improve customer outcomes, and to make the homeownership journey as seamless as possible,” Seal says.
Shawbrook CEO Marcelino Castrillo adds the firms’ “combined capabilities and scale” will benefit 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,” Castrillo says.