Mortgage Advice Bureau (... Share Discussion Threads

[gsbmba99] 20/10/2017 16:32

Chapchip - do you know whether The Property Franchise Group is a MAB affiliate? Just looking at the possible combination of BLV and TPFG and thinking that, if TPFG is not already a MAB affiliate, this could be good news for MAB if the existing BLV management team run the combined entity.

[gsbmba99] 26/9/2017 17:38

August CML number is £24.2bn. I have that as +9.7% YoY and +5.2% MoM. 2H YTD (ie Jul + Aug) is £47.2bn or +9.5% on last year.
Company results looked good. Still a fair amount to do in 2H. They need about £60m of revenue which would represent about 20% growth on 2H last year. They're entering 2H with 13% more advisers than last year and the first 2 months of 2H are up nearly double digits year on year. It's feeling a bit more achievable but fingers crossed the year on year momentum is maintained for the duration of the year. At the EPS level, the outlook is brighter as they only need 2% more EPS than 2H last year to hit consensus. 1H operating profit margin improved 40bps on last year and 2H normally has a much better margin than 1H.

[gsbmba99] 24/8/2017 14:35

CML have changed their reporting format ( ). They're only giving a Jul 17 total of £23.0bn with no prior month or prior year comparison. So, assuming the Jun 17 estimate didn't change, I have YTD 17 at £141.7bn as against £141.2bn in 2016 so we've now recovered the prior year BTL deficit and are showing ever so modest growth. I have Jul 17 at +9.2% on Jul 16 (£21.1bn). Commentary still sounds a bit cautious: "First-time buyers and remortgage activity on the part of homeowners have been the drivers for lending for some time now. While we see this continuing over the short term, we anticipate the pace of growth to slow somewhat over the second half of this year, dampened by a potentially more challenging economic outlook."

[chapchip] 28/7/2017 17:19

yes but I think H2 always tend to be busier and H1 affected by the slow down from Nov and Dec the previous year, so Jan & Feb bankings can often be slower, so H1 sometimes really only a 4 month period, whereas H2 includes business written in the tradional busy March, April May as most deals have 3 months lead in

[gsbmba99] 25/7/2017 07:44

Trading update out. 1H17 revenue of £49m, +15% on last year. Total advisers 1008, +6% on 31 Dec. Current trading in line. Full year consensus looks to be about £109.4m for revenue which means they need £60.4m in 2H17 or +21.4% on 2H16. Entering 2H17 with 13% more advisers than started 2H16. Mortgage lending normally second half weighted. 2H as percentage of full year CML numbers has been 57.4% in 2013, 50.7% in 2014, 56% in 2015 and 51.2% in 2016 (which itself was skewed by the 1H BTL frenzy). 2H CML lending was £91.4bn in 2013, £99.6bn in 2014, £123.1bn in 2015 and £126.3bn in 2016. Looks like there is some work to be done in 2H.

[gsbmba99] 20/7/2017 15:11

CML gross mortgage lending numbers are out ( Jun 17 estimate is £22.1bn +9% on May 17 (revised up from £20.1bn to £20.3bn) and +3% on Jun 16. YTD gross mortgage lending is £118.7bn which is -1.2% on £120.1bn in Jan-Jun 16. Commentary sounds a bit cautious "Given that the economy and housing market are closely linked, this has contributed to the activity plateau since the start of the year. Looking ahead, housing market activity is likely to reflect economic conditions – a deterioration would likely dampen first-time buyer numbers and homeowners remortgaging – the factors that have supported lending recently." Next update 24 Aug

[gsbmba99] 20/7/2017 10:13

Trading update 25 Jul as per financial calendar (

[edale] 20/7/2017 09:48

We had a trading statement at the end of July last year so possibly will get something next week.

[gsbmba99] 17/7/2017 17:09

The good news is that Belvoir will need more than 32 people at Brook. That's a good point about the BTL remortgage since Belvoir will have a relationship with the property owner for lettings. I hadn't thought of that.

[chapchip] 17/7/2017 16:57

depends on volume and quality of both the estate agent and the mortgage broker.

The two would need a good relationship....the agent needs to be motivated to capture the mortgage opportunity early enough, the mortgage adviser needs to be skilled enough to engage the client and get their buy in to be the chosen mortgage adviser wherever they find.

As you point out Belvoir are lettings focused but our local one here is now doing sales, probably as BTL portfolio landlords hive off some property.

Might get an uplift in BTL remo business perhaps

[gsbmba99] 17/7/2017 16:52

Would a sales focused estate agent location be able to support a full-time mortgage adviser or would they have to cover multiple offices in order to be efficient? Brook are based in Barnsley and have 32 staff, not all of whom are advisers. Belvoir have 302 outlets nationwide though a large proportion of those locations are lettings focused. Could provide a nice uplift in adviser count later this year or next year.

[chapchip] 17/7/2017 15:34

yes that's probably true.

[gsbmba99] 13/7/2017 07:30

Belvoir Lettings (BLV) have acquired a MAB affiliated firm of advisers called Brook. Brook have 32 staff and advisers. The plan is to increase financial services related revenues at both BLV's lettings focused brands (as they add property sales) and at Newton Fallowell. Brook to continue relationship with MAB. It seems like quite a large proportion of MAB's advisers are embedded in estate agents.

[gsbmba99] 22/6/2017 09:57

New CML figures out ( May 17 £20.1bn up 12% on April 17 and on May 16. Suggests Apr 17 reduced from £18.4bn to £17.9bn. YTD through May is now £96.4bn -2.2% on the £98.6bn in 2016. Fuller commentary here ( Stable mortgage lending despite reduction in transactions suggests lots of remortgaging.

[chapchip] 14/6/2017 08:44

MAB has its fingers in a multitude of pies that are related to its core activity, it makes strategic investments in the companies that it works with around mortgage sourcing, specialist protection, specialist lending, conveyancing etc

its linked up with Purplebricks, so natural step would be Australia & US I guess

The lead generation is as much about brand awareness as well as getting clients hooked in and engaged from a long way out in the process.

[gsbmba99] 13/6/2017 15:24

Not in the industry. Just trying more fully to understand the company and its capabilities, so I appreciate the insight. Looking through MAB's recent investment history, they seem to be focused heavily on lead generation. It seemed illogical to focus so much on lead generation without also focusing on keeping the customers after the fact so I'm pleased to hear they offer it even if your firm doesn't use it.

Are you aware of any other countries where mortgage advice is cumpulsory? Just trying to identify what, if any, other markets might be potential targets for expansion.

[chapchip] 13/6/2017 10:55

yes CRM is very under serviced by most....many estate agency based brokers are just seeing new clients and then have little strategy for follow up in 2-5 yrs time as rates expire.

Midas Pro is the compliance and sourcing tool but it can also act as a CRM tool, but we have our own.

Are you in the industry ??

[gsbmba99] 25/5/2017 21:49

Congrats on your month. The CML outcome through 4 months is better than I had feared. Hopefully the second half will benefit from a lack of a referendum effect. I too am excited about the potential market opening up in Product Transfers. If the company's estimate of £90bn is correct, it would mean a market 30%+ larger than it was previously. It also helps solidify the mortgage broker's position in the customer relationship if they can accompany the customer everywhere they might want to go. Would I be right in thinking that CRM is a significant opportunity in this industry? Is that something that MidasPro incorporates?

[chapchip] 25/5/2017 15:54

not at MAB ...April was record month.

Another thing to pcik up on which the CML figures will not show.....there is a huge new and untapped market for brokers....which is Product Transfer or rate Switches.....which is effectively when a mortgage product ends, presently about 85% of this market is in house with lenders.......from this year that's fundamentally changing as lenders open it up to brokers to transact. In the majority of cases it will not pay the same proc fee as a new loan origination but will still generate income from a previously unavailable source

[gsbmba99] 25/5/2017 15:45

April CML estimate for gross mortgage lending is £18.4bn -11% on Mar 17 which was revised down from £21.4bn to £20.7bn. Year to date (Jan-Apr) 17 is £76.8bn -4.8% on £80.7bn in 16. (

[gsbmba99] 24/5/2017 08:38

AGM statement ( Number of advisers at 990 +40 on 31 Dec 16 or +4.2%. "Organic recruitment has been in line with the Board's expectations and we expect new business recruitment to be weighted to the second half of the year." "Current trading is in line with the Board's expectations and we look forward to delivering further growth in the remainder of this financial year."

[gsbmba99] 20/4/2017 10:16

Mar 17 CML mortgage lending figure is £21.4bn -19% on Mar 16. Q117 £59.1bn down 6% vs £63bn in Q116. Feb 17 appears to have been revised lower from £18.2bn to £17.9bn. "Mortgage lending appears to be in neutral gear. Our gross estimate for March is £21.4 billion and this is broadly in line with average monthly lending over the past year. Within this aggregate level, there has been a shift towards first-time buyer and remortgage customers, away from home movers and buy-to-let landlords. We expect this profile to continue over the short-term, as low mortgage rates encourage existing borrowers to remortgage and government schemes help first-time buyers. We do not expect any marked effect from the General Election." (

[chapchip] 31/3/2017 09:32

The increased proc fees will in part be due to increased house prices and therefore increased borrowing, as the proc fees are directly linked to the amount borrowed.

clients fees increased probably related to increased adviser numbers and more advisers charging a higher fee.

I m one of the only firms who are part of MAB that do not charge a client fee

[gsbmba99] 31/3/2017 09:12

Interesting. So the effect you describe (lower mortgage procuration fees offset at least partially by higher client fees) might be what's visible in the 2H16 on 2H15 comparison which saw mortgage procuration fees +9.1% but client fees +17.2%?

[chapchip] 31/3/2017 08:15

its to do with what are called Product Transfers or Rate Switches.....whereby at the end of any fixed or preferential rate period a customer can choose a new product with the same lender, as opposed to remortgaging to a new lender.

Lenders have long battled to keep this all in house, but the tide has changed recently and most now allow brokers to process this transaction or will do by the end of the year, although the procuration fee lenders is about half of what they pay for the origination of new business. approx 0.20% of the loan as opposed to 0.40%.

I guess where MAB see this as a revenue enhancer is most of their brokers charge the client a fee of which they get a slice, as well as getting a slice of the 0.20% and an opportunity to review protection (life cover etc etc)which they get a slice of the advisers commission and an override from the life assurer.