Birmingham Bank acquired by global home ownership firm

Matt Smith, CEO Birmingham Bank Ltd, Vishal Garg, CEO Better, Michael Lamont, European Vice President, Better

Better, the digital home ownership platform, has completed its acquisition of Birmingham Bank.

The news means 40 jobs will be created within Birmingham Bank in the next three years, in roles across business development, savings management, marketing, operations, finance, risk management and IT. 

In 2022, the firm purchased a minority share in the bank, but following approval by the Prudential Regulation Authority has acquired all remaining shares.

The bank, which was established in 1955, will assist Better’s plan to scale up residential mortgage lending across the UK, as well as growing its consumer and SME deposit base. This will in turn will fund Better HomeOwnership loans through forward flow agreements. 

CEO of Birmingham Bank Matt Smith said: “Better’s acquisition of the Bank will bring to life our strategy and deliver a compelling proposition and service. We look forward to supporting our loyal customer base by continuing to offer our deposit and SME finance product ranges and welcoming many new customers in the coming months and years.”

Vishal Garg, founder and CEO of Better, said: “Better’s global mission is to make homeownership cheaper, faster, easier and simply much better for all. We are excited to bring Birmingham Bank into the Better family and look forward to helping it grow its exposure to residential lending business across the United Kingdom.

“Along with our United Kingdom mortgage advisor Better.co.uk and our United Kingdom mortgage lender Better HomeOwnership we have positioned Better to deliver a vertically integrated platform to help consumers across the market achieve their home ownership dreams.”

Andy Street, Mayor of the West Midlands, commented: “This investment reinforces the West Midlands’ strong track record of attracting US investment and Better will be an extremely valuable addition to what is the UK’s largest regional financial and professional services cluster.

“With an established history in the city, we’re also very proud that Birmingham Bank will keep its original name as it helps future generations of local people to get onto the housing ladder.”

Michael Lamont, Better Vice President for Europe, who will join the board of Birmingham Bank subject to regulatory approval, said: “Better is committed to maintaining Birmingham Bank’s local lending presence and helping families across the United Kingdom benefit from Better’s mission to make homeownership cheaper, faster and easier, underpinned by always lending responsibly”.

Better.co.uk, which is fully owned by Better, is a mortgage advisor in the UK.  Since Better acquired Better.co.uk, formerly Trussle, in 2021, the firm has grown from 80 to 170 employees with offices in London and Cardiff.

The terms of the transaction are not disclosed. 

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