Mortgage Advice Bureau is hoping to attract new-build brokers to its network after acquiring Mortgage Talk.
Last week, MAB bought new-build specialist brokerage Mortgage Talk in exchange for shares.
Mortgage Talk has partnerships with estate agents and builders, while MAB has an AR network offering. Together they plan to launch a tailored AR package with systems and support to meet new-build brokers’ needs.
Peter Brodnicki, chief executive of MAB, says: “Mortgage Talk is an excellent fit for us because while it has a similar business model, it also offers something we don’t have through its new-build expertise. This is an area we want to expand in and one way to do that is by creating a new-build AR proposition.”
He adds that while MAB will still seek appropriate opportunities, the share exchange acquisition was a one-off that was made possible because the two are such a good fit.
Peter Birch, chairman of Mortgage Talk, says: “By combining two strong senior management teams, this deal will benefit our partners as well as giving us scope to launch a new offering to builders and new-build brokers.”
Birch will join the MAB board as the second largest shareholder of the firm, while Brodnicki will continue to run the company and retain a majority stake in MAB Group.
The move comes after MAB reported a pre-tax profit of £1.9m for 2011 – up from £1.25m in 2010 and higher than its previous record of £1.4m in 2007.
Mortgage Talk’s latest published results show a pre-tax profit of £326,216 for the year ended November 30, 2010, up from £87,177 in 2009.