Mortgages  

MAB to reimburse staff after Covid pay cuts

MAB to reimburse staff after Covid pay cuts

The Mortgage Advice Bureau is set to reimburse the 20 per cent pay cut taken by all non-furloughed staff at the height of the coronavirus crisis. 

In its results for the first six months of this year, out yesterday (September 29), the mortgage broker confirmed the pay cut taken by staff during April, May and June was set to be reimbursed as a result of "strong trading" in recent months. 

Chief executive Peter Brodnicki said if the strong performance continued throughout the remainder of this year the company intended to also repay the £500,000 government coronavirus grant it received.

But Mr Brodnicki said this would depend on any new restrictions which might "significantly adversely impact the housing market" in the remainder of this year. 

MAB also confirmed the advisers furloughed during the height of the crisis have now all returned to work. 

The company's appointed representatives had placed around 245 advisers on furlough.

As activity in the mortgage market rebounded once lockdown was lifted and social distancing rules eased, Mortgage Advice Bureau said it saw a "strong pick up" in recruitment, with the business reporting its pipeline of new appointed representatives had grown "substantially".

Mr Brodnicki said: "The group is currently trading strongly and, in the absence of any such new restrictions, we expect adjusted profit before tax for the full year to be significantly ahead of the market's current expectations."

For the six months to June the company reported a pre-tax profit of £6.1m, down by 15 per cent from £7.2m in the same period in 2019. 

It came as the business announced a joint venture with Australian Finance Group for its MAB Broker Services arm in Australia. 

Mortgage Advice Bureau said the partnership would attract "the best brokers" into it business model down under and completion of the deal was expected in the coming weeks.

rachel.mortimer@ft.com 

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.