Shawbrook Banking Group acquires specialist lender Bluestone Mortgages

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Daniel Face

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Bluestone Group has agreed a deal with Shawbrook Group to sell its UK mortgage lending and portfolio serving operations for an undisclosed sum.

The cash and share transaction will see Shawbrook acquire 100 per cent of Bluestone shares and subsidiaries, and is expected to complete in Q2 of 2023 following regulatory approval.

Shawbrook Group CEO Marcelino Castrillo said: “We are delighted to have strengthened our long-standing and successful partnership with Bluestone through this acquisition.

“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 employs around 90 staff between its offices in London and Sheffield. The company entered the UK’s specialist residential mortgage market in 2014 with its acquisition of Basinghall Finance, a joint venture with the Australian Macquarie Group.

Following the deal with Shawbrook, the existing management team will continue to operate as normal under the Bluestone brand.

Alistair Jeffery, Chairman for the Bluestone Group, said “We are very pleased to have agreed terms for the sale of Bluestone Mortgages to Shawbrook, with whom we’ve had a strong relationship for many years.

“Under Shawbrook’s ownership, we’re confident the business will continue to flourish, delivering strong outcomes to the increasing number of customers that fall outside mainstream criteria.

“Post completion, we look forward to becoming a Shawbrook shareholder and maintaining our relationship with Bluestone Mortgages via our technology business, Fignum.”

Daniel Face

Born and raised in Berkshire, Dan fell into journalism after completing his bachelor’s degree in English at UCL. Writing for The Business Magazine and local Biz News sites has given him the opportunity to chat with all manner of small business owners and share their success stories with a wider audience. Outside of work, Dan enjoys live music, board games and quiz shows, and is making a slow but persistent effort to learn Spanish.