Shawbrook Bank has acquired specialist lender The Mortgage Lender to grow its residential and buy-to-let product offering.

TML was acquired by Shawbrook for an undisclosed fee and will retain its existing brand.

Shawbrook says the deal, which has regulatory approval, was a strategic purchase providing the bank with substantial growth opportunities, increasing its distribution network.

The acquisition is expected to complete in February, subject to the remaining conditions being met.

Shawbrook Property Finance managing director John Eastgate says:  “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.” 

TML chief executive Peter Beaumont says: “The deal is great news for TML, our broker partners and borrowers. We’ve worked closely with Shawbrook Bank for the last three years, it’s a progression of that partnership and a great strategic and cultural fit for both businesses.

“It provides the strength of a retail funded bank for our buy to let and residential propositions together with the ability to expand our product range in the future.”

The full acquisition of TML follows Shawbrook taking a minority share in the business in 2018.