Shawbrook Bank has bought a significant amount of shares in The Mortgage Lender, Mortgage Introducer can exclusively reveal.
Companies House records show that the deal saw the challenger bank formally take shares in the business on 26 March 2018.
Records also show that statement of capital was issued the following month (dated 26 March) which shows shares allotted to the amount of £6,251,483 – however the full value of the deal remains unclear at present.
As such Shawbrook is now listed as “a person of significant control” suggesting that it holds more than 25% of shares or voting rights in the company. However it is rumoured that the shareholding amounts to closer to 40%.
The move predated a shake-up at TML which saw sales and marketing director Pete Thomson leave the lender last month.
Since then TML has been on a recruiting spree with the appointment of three new business development managers as well as creating two new national account manager roles.
Speaking of the appointments The Mortgage Lender chief executive Trevor Pothecary said they marked a “step change” in the lender’s growth ambitions.
And earlier this month TML also launched its first range of buy-to-let products through selected intermediary partners. As part of the deal Shawbrook will fund the forward flow of all residential buy-to-let originations for The Mortgage Lender, which will market, underwrite and service the mortgages.
Steve Pateman, chief executive officer at Shawbrook Bank said: “We welcome this partnership with The Mortgage Lender as their ethos and purpose complement our desire to support under-served markets. Utilising their experience and expertise in the residential buy-to-let market will support our growth ambitions in this sector.”
The Mortgage Lender deputy chief executive, Peter Beaumont added: “Shawbrook’s ambitions in the buy-to-let market match our own, which makes them our ideal partner.”
But whilst TML has been making additions to its team and ranges Shawbrook has been plagued with departures and recently announced that Pateman will stand down in the coming months.
The lender had previously embarked on an extensive restructure of its senior management team earlier this year following the departure of then group deputy chief executive and executive director Stephen Johnson.
More to follow…