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Shawbrook Group notes portfolio acqusitions

25 May 2017 07:33

Shawbrook Group has successfully acquired a £53m portfolio of first charge complex mortgages from a specialist mortgage lender.

In addition to the acquisition of the portfolio, an agreement with the vendor had also been reached for Shawbrook to participate in a Forward Flow Agreement.

The agreement would oblige Shawbrook to acquire eligible mortgage loans originated by the vendor, which would be consistent with Shawbrook's current risk appetite, on a monthly basis with an initial term of one year and rolling thereafter.

"The underwriting criteria and financial characteristics of the portfolio are similar to that of Shawbrook's own Residential Property portfolio," it said in a statement.

In addition to the above portfolio, Shawbrook also announces said it was in exclusive negotiations with a UK-based lender to acquire a portfolio of commercial and buy to let loans.

"Whilst the exact quantum of the portfolio is still to be determined, it is anticipated that it will be in excess of £300m.

"These loans are similar to Shawbrook's organically originated Property Finance portfolio and, whilst impacting the mix of total customer loans, are expected to be accretive to returns (the precise impact will be dependent on the agreed acquisition price and the quantum of the portfolio).

"Whilst there can be no certainty that the acquisition will proceed, if the acquisition is successful it is currently expected that completion and migration would take place in H2 2017."

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