Bluestone Group to Sell UK Mortgage Lending and Portfolio Servicing Operations to Shawbrook Group #

Bluestone Group, a specialist mortgage lender in the UK, has agreed to sell its 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.

Bluestone Group’s decision to sell its UK mortgage lending and portfolio servicing operations is a strategic move that aims to accelerate its growth plans and develop new lending solutions for customers in need of a specialist mortgage lender. Financial details of the transaction have not been disclosed.

BML, which 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, typically funds its originations via platform lending relationships with Shawbrook and other banks.

Bluestone Group chair Alistair Jeffrey stated that after completion, the group would 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 CEO Steve Seal said the support now available from Shawbrook would help the firm accelerate its growth plans and develop new lending solutions for customers in need of a specialist mortgage lender. Seal added that one element of BML’s growth strategy is to leverage technology to improve customer outcomes and make the homeownership journey as seamless as possible.

Shawbrook CEO Marcelino Castrillo believes that the firms' “combined capabilities and scale” will benefit UK homeowners, especially driven by increasing numbers of people choosing to work for themselves or in sectors where incomes are complex. He also anticipates significant long-term growth in the specialist mortgage market.

Overall, this acquisition is a significant step for both companies, as it creates opportunities for synergies and growth in the specialist mortgage market.