Shawbrook has announced the acquisition of Bluestone Mortgages (BML) in a cash and share deal.

BML supports customers which don’t fit the traditional profile of high street banks.

Bluestone Mortgages has originated over £1.8bn since its launch, and currently manages a book of over £1.3bn residential loans. The growth of the business has been supported by an experienced team which today stands at c.90 employees based in offices across London and Sheffield.

Shawbrook has been working with BML since 2017 through a platform lending arrangement.

Marcelino Castrillo, the group’s CEO, said: “We are delighted to have strengthened our long-standing and successful partnership with Bluestone Mortgages through this acquisition. Bluestone Mortgages is a well-established brand in the UK specialist residential mortgage market, and by bringing the two organisations together, we can use our combined capabilities and scale to offer an even stronger proposition to 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. 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.”

Steve Seal, Bluestone Mortgages’ CEO, added: “This transaction is great news for Bluestone Mortgages, our intermediary partners and our customers. Shawbrook has been a long standing strategic partner for many years and joining the Shawbrook Group is a natural step as we continue to grow and develop the business.

“We have exciting growth plans and the support available from Shawbrook will help to accelerate these, enabling BML to provide innovative lending solutions to the growing number of customers who will need the support of a specialist mortgage lender.”