It said subdued consumer confidence and volatility in the market made the environment more complex for advisers and customers. Despite this, its trading update showed that its revenue increased by 8% year-on-year to £160m, driven by refinancing.
The share of its new mortgage completions grew from 8.2% to 8.3% in the five months to May, while its share of product transfers increased from 2.9% to 3.2%.
More mortgage refinance activity expected
There was a 15% uplift in mortgage applications in the first 19 weeks of the year, higher than the same period last year. MAB said this included accelerated refinancing activity in March and April, as borrowers fixed before their products expired due to interest rate uncertainty.
This was followed by a 13% year-on-year decline in mortgage applications in the seven weeks to the end of June, bringing the overall level of applications during the first half 7% higher than last year.
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MAB said this was a result of earlier refinancing activity and a slowdown in applications caused by uncertainty in the housing market.
The firm has identified around 70,000 fixed rate mortgage maturity opportunities in the second half of the year, which it expects to support higher levels of refinancing activity. MAB said it did not expect housing transactions to improve as the macroeconomic environment was still volatile.
Change in mortgage business mix and slower protection impacts H1 profit
MAB said the volumes of its protection policies grew more slowly than mortgage completions, reflecting the shift towards remortgages and product transfers, which usually generate lower protection volumes than purchase business.
The firm said the uncertain rate environment meant advisers also spent more time securing the best outcome for clients, which impacted productivity.
MAB saw the number of mainstream advisers rise 3% to 2,194, compared to 2,135 in December. Meanwhile, the average revenue generated by each mainstream adviser stayed flat at £74,000, despite the shift in product mix.
This change in mortgage mix dented MAB’s profit before tax, which rose only slightly from £14.5m to £14.6m. The firm also attributed this to the slower growth in protection policy volumes and the timing of benefits from integrating the subsidiaries, Evolve and Meridian, which it acquired at the end of 2025.
MAB to generate more profit in H2
MAB said it had made progress in integrating these subsidiaries and the operational and commercial benefits from this were expected to increase over the second half of the year.
The higher contribution from the businesses MAB has invested in has changed the shape of its cost base, it said, creating increased operating leverage to its revenue.
It said profitability was expected to be more weighted towards H2 than in previous years, supported by a growth in revenue, customer retention, protection and actions to improve adviser productivity.
Peter Brodnicki, founder and CEO of MAB, said: “MAB delivered a resilient performance in the first half, with mortgage completions increasing by 16% and further growth in our market share across both new mortgage lending and product transfers.
“The mortgage market remains predominantly refinance-led, with growth concentrated in remortgages and product transfers, while a sustained recovery in purchase activity has yet to emerge. This represents a significant change in business mix compared with the first half of 2025.”
He added: “Against this backdrop, MAB has continued to demonstrate its strength and resilience and we have strong visibility over the significant fixed rate mortgage maturity opportunity in the second half.
“Management is taking targeted action to improve adviser productivity and profit conversion, with a particular focus on customer retention, protection performance, the delivery of acquisition synergies and continued cost discipline. These actions, together with the opportunities ahead, mean that I remain confident in the group’s outlook for the full year. Once again, we are demonstrating the strength of our business and financial model by pulling operational and commercial levers to respond to market conditions.”
