Mortgages  

Mortgage Advice Bureau revenue rises

Mortgage Advice Bureau revenue rises

Revenues at the Mortgage Advice Bureau rose 23 per cent during 2016.

The network posted revenues of £92m, which MAB said was driven by its increasing number of advisers.

By the end of 2016 MAB had 950 advisers, a 20 per cent increase on the previous year.

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The company said its underlying profit before tax for the year was ahead of market consensus despite a post-referendum lull, but it did not reveal what this profit was.

This was despite having to absorb a supplementary levy from the Financial Services Compensation Scheme of £400,000.

Peter Brodnicki, chief executive of MAB, said: “Despite the uncertainty the EU referendum brought to the housing and mortgage markets last summer, MAB has delivered yet another strong performance.

“Activity levels picked up following the expected summer lull, and from this position the housing and mortgage markets are forecast to be flat over the next few years.

“Our increase in adviser numbers was ahead of our expectations last year and we remain confident about continued growth in 2017 and 2018, both organically and from new appointed representatives.

“Our strategy is very clear both in the short and longer term, and the investments made in 2016 form part of our longer term planning to maintain year on year market share growth and further strengthen MAB's overall market position.”

Although average revenue per adviser was flat in 2016 due to the impact of the lull in activity in the housing and mortgage market surrounding the EU referendum, MAB said it expects to see growth in the current year.

Yesterday the Council of Mortgage Lenders revealed that gross mortgage lending during 2016 reached an eight-year high of £246bn.

Last month MAB announced that it was expanding into Australia through a joint venture with a Sydney-based broker.