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Mortgage Brain stoic following ‘auction sale’ rumours

by: Mortgage Solutions
  • 08/05/2017
  • 0
Mortgage Brain stoic following ‘auction sale’ rumours
A report in The Sunday Times suggesting technology giant Mortgage Brain has been placed up for auction up to a maximum valuation of £100m has been rejected as 'speculation.'

Mark Lofthouse (pictured), CEO, Mortgage Brain said: “There’s lots of speculation surrounding possible sales in this market with fintechs and banks being high on this list. We can’t comment.”

The story suggested Mortgage Brain shareholders, the six biggest mortgage lenders – Barclays, Lloyds, Nationwide, RBS, Santander and Virgin Money – are working with business services firm Deloitte on a potential sale. Deloitte is reported to have approached private equity firms over a potential deal.

According to its company formation articles, any sale of the business needs to be agreed by at least four shareholders. There are six directors on the Mortgage Brain Board including Mortgage Brain CEO Mark Lofthouse, Nationwide’s managing director intermediary sales, Ian Andrew and Craig Calder, director of mortgage products at Barclays.

Mortgage Brain turnover increased to £10.02m in the year to March 2016.

Its annual report said ‘the principal objectives of the company are to strengthen and grow the business through continuous product development and expansion of the products and services into new and associated markets through a combination of organic growth and joint ventures/acquisitions.’

The group reinvests 40% of its cost base in the development of current and future products and services.

Mortgage Brain bought AE3 Media in 1 July 2016.

James Tucker, managing director, Twenty7Tec , said: “The world of mortgage technology is changing, faster than anyone expected and greater investment is required by all participants to keep pace. Whilst we are always in the market for potential acquisition opportunities, in this instance we would consider the valuation quoted to be rather fanciful.”

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