Terry Woodley, Shawbrook Bank

Shawbrook acquires Ratesetter's development finance team and £167m loan portfolio

Shawbrook Bank has announced the acquisition of RateSetter’s P2P-funded development finance business, including a loan portfolio with facilities totalling £167m.


The addition of the RateSetter business will add more than 100 new active clients to Shawbrook’s existing development finance customer base. 

The deal also increases the bank’s capacity and distribution reach, with RateSetter’s development finance team joining the bank.

The acquisition increases both the scale and capacity of Shawbrook’s existing development finance business which, according to the lender, has already provided over £750m of facilities to UK housebuilders.

Terry Woodley, managing director of the development finance business at Shawbrook (pictured above), said: “This is a fantastic acquisition and one that complements our existing development finance operations.

“Over the last four years, we have consistently responded to the funding needs of established regional property developers, enabling us to create a development finance business which has subsequently grown rapidly in size, reputation and confidence. 

“Customers in this market require specialist fit-for-purpose funding products, delivered consistently and by experienced people who understand the dynamics of a build and the wider property market.

“The RateSetter business has been built by serving the needs of property developers in a key part of the market that remains underserved by traditional lenders. 

“Naturally, this expands the market opportunity for the bank, and we are thrilled to welcome the RateSetter development finance team and new customers to Shawbrook.”

Terry added that the bank’s ambition was to become the UK’s “specialist SME lender of choice”.

“By applying our specialist lending principles and high levels of service to an immediately adjacent segment of the development finance market, where loan sizes typically start at £1m, we fully expect the acquisition of the RateSetter business to quickly deliver both scale and synergies.”

Peter Behrens, chief commercial officer at RateSetter, commented: “This transaction demonstrates the enduring quality of RateSetter’s loan assets.

“I am pleased that our property finance team can go to a new home, where they will complement the Shawbrook team and continue to grow the franchise they have built.” 

RateSetter, which launched in 2010, has delivered more than £500m of finance to property developers, helping improve the quality and quantity of the UK’s housing stock through the renovation and construction of 2,300 homes across the country.

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