Revenue is on the up at Derby-based Mortgage Advice Bureau (MAB), despite a tough environment of interest rate rises, reduced affordability, and cost of living increases.
According to a trading update for the six months ended 30 June 2023, group revenue was up 21% to £116m, growing from £96.5m in the same period of 2022, with organic growth of 1% despite the market seeing a 40% drop in new mortgage approvals following the mini-budget in September 2022.
Peter Brodnicki, CEO of MAB, said: “We had hoped to be in a period of interest rate stability as we entered Q3, followed by a resumption in organic adviser growth in Q4. Instead, we find ourselves in an environment of continuing interest rate rises, reduced affordability, and cost of living increases, all of which are naturally impacting consumer confidence.
“Despite strong underlying demand for property, some buying decisions are understandably being delayed by our customers until we have a more stable economic and interest rate environment.
“Despite the additional market pressure, I am delighted with how MAB is performing and how our market share continues to grow. Re-mortgages and increasing numbers of product transfers currently represent around 60% of our written transaction volumes.
“This will deliver MAB a greater number of re-financing opportunities in the medium term, with the group’s advisers performing particularly strongly in this area.
“Despite the signs of a market recovery being further off than we expected three months ago, business efficiency continues to increase, adviser productivity has been maintained, and all strategic initiatives continue to progress well. The group is well positioned to deliver further growth as the market recovers.”
