Mortgage Advice Bureau confident amid strong demand
By Josh White
Date: Wednesday 25 May 2022
(Sharecast News) - Mortgage Advice Bureau said in an update on Wednesday that adviser numbers had grown further since its final results were announced on 28 March, rising 9% in the year-to-date to 2,046 as at 20 May.
The AIM-traded firm, which was holding its annual general meeting, said its current pipeline of incoming new appointed representatives and advisers was also "strong", as was its pipeline of written new business set to complete in the coming months.
Non-executive chair Katherine Innes Ker said the company was also growing the number of new customer leads, which would help it deliver further market share growth.
"This all reflects the strong momentum that the group has built and will support MAB's plans to deliver secure and sustained profitable growth," Innes Ker told shareholders.
MAB said its mortgage completions in the first quarter totalled £5.8bn, representing an increase of 11% on a "notably strong" first three months of 2021, which was helped by the government's stamp duty relief, and 44% over the first quarter of 2020.
"We are pleased with this performance, especially when compared to the exceptional market performance we saw in the first half of 2021," Innes Ker said.
"Despite the geopolitical uncertainty and the rising cost of living for UK households, those that want or need to move home continue to do so.
"Consumer demand for housing remains high and activity is strong."
As expected, Katherine Innes Ker said increases in interest rates had stimulated more refinancing activity, with mortgage borrowers now "more motivated than ever" to secure the best rate possible to help their household budgeting.
"The resilience shown by people who continue to move home is helped by the fact that employment is high, household savings are high and for those who are subsequent movers, housing equity levels have also risen over recent years.
"Although interest rates have risen and will most likely continue to rise over the next 12 months, current interest rates remain near historical lows. Lenders also have strong liquidity levels, meaning mortgage availability is now close to pre-pandemic highs, thereby helping the market to remain buoyant.
"As we look out to the second half of the year, we expect to complete our acquisition of Fluent, which is subject to FCA approval of change in control."
The acquisition would be "transformational" for the firm's national lead generation strategy, Innes Ker said, allowing it to leverage the combined strength of both businesses to attract more new leads into the group.
"We also expect the acquisition to be significantly earnings enhancing in the first full year following completion.
"This, together with our maturing and new growth drivers, will position the enlarged group to further accelerate its pace of growth.
"Current trading remains in line with the board's expectations."
At 0901 BST, shares in Mortgage Advice Bureau Holdings were up 2.63% at 975p.
Reporting by Josh White at Sharecast.com.
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