Peter Birch, chairman of Mortgage Talk, will join the MAB board as the second largest shareholder, while chief executive Peter Brodnicki will continue to run the company and retain a majority stake in the MAB Group.
The combined group will have over 500 advisers, with mortgage applications expected to top £4.5bn this year.
Peter Brodnicki, chief executive of Mortgage Advice Bureau, says: “This is great news for both companies, as it will allow us to create a truly formidable force in the mortgage industry.
“I am really looking forward to working with the Mortgage Talk directors and management as we look to diversify and expand the MAB group, while retaining the focus on maintaining quality and increasing efficiency.”
Birch says: “There is a terrific cultural fit between the two companies, and by combining two exceptionally strong senior management teams under MAB’s DA proposition, I am sure it will hugely benefit our existing partners and advisers, as well as giving us scope to launch an innovative offering to builders and specialist new build mortgage brokers throughout the UK.”
Last week Mortgage Advice Bureau reported a pre-tax profit of £1.9m for 2011, up from £1.25m in 2010.