The Mortgage Advice Bureau has reported revenue growth of 17 per cent and gross profits rising 9 per cent from £12m to £13m for the first six months of the year.
The numbers come from the firm’s latest half-yearly report, which also shows 196 per cent growth in product transfer business as compared to H1 2017, and an increase of 18 per cent in new mortgage lending within the same time frame. Overall, MAB reports gross mortgage lending rising by 25 per cent.
This rise in product transfers versus house purchase mortgages is one reason MAB ascribes to seeing its gross margin fall from 24.1 per cent in H1 2017 to 22.5 per cent so far this year. It says that it expects further margin erosion “going forward.”
Alongside this data, the half-yearly report also shows that gross mortgage lending with new lenders grew from £5bn to £5.9bn – 18 per cent – and that the company’s market share of new mortgage lending has risen from 4.2 per cent to 4.7 per cent.
Mortgage Advice Bureau chief executive Peter Brodnicki cites a 5 per cent fall in the number of transactions compared to H1 2017 when he says: “We are pleased that this growth was achieved in a weaker house purchase market. Although one or two segments of mortgage lending have risen slightly, overall housing transactions have reduced, with our first half results representing a clear outperformance against the housing market.”
Brodnicki adds: “We continue to grow MAB’s market share, with our primary focus being to support our business partners and ensure they deliver the best advice to as many customers as possible.
“We have always sought to use technology to improve the way we operate, and we are deliberately making technology central and integral to our business model. As we look forward, we expect to use developments in technology to directly benefit MAB advisers and customers, through improvements in efficiency, productivity, lead generation, product offering and customer experience.”