Mortgage broker in £21m swoop for Scottish counterpart
Derby-based Mortgage Advice Bureau (MAB) is set to buy Scottish counterpart First Mortgage Direct Limited in a deal that could be worth up to £20.6m.
First Mortgage has one trading subsidiary, Property Law Centre, which is wholly owned. In the nine months ended 31 December 20182, First Mortgage achieved revenue of £10.2m and profit before tax of £1.5m.
The Scottish based business employs 90 mortgage and protection advisers and has been expanding south of the border.
The initial deal will see MAB buy 80% of First Mortgage shares for £16.5m. It has entered into an option agreement with the managing director of the Scottish firm Ian McGrail, to acquire the remaining 20% of the entire issued share capital of First Mortgage between 2024 and 2030.
Ben Thompson, managing director of MAB, said: “This acquisition is central and complementary to our strategic objective to grow our market share of new mortgage lending.
“First Mortgage is a highly reputable, forward thinking business of significant scale with a clear strategy to deliver further strong year on year growth.
“This enables us to pursue at pace our aim to accelerate Group growth through excelling in areas of specialisation, and in particular, building on our omni-channel choice for customers.
“This approach best positions MAB to benefit in an evolving intermediary sector. MAB’s new technology developments will further strengthen our capability and ambition in this regard.
“I am delighted that Ian has chosen to work with us, to help us both to really accelerate our respective growth plans and am excited at the prospect of making this highly successful and enjoyable for both teams.”
