Shares plummet at Derby mortgage broker
Shares in Derby-based brokerage firm Mortgage Advice Bureau (MAB) slumped rapidly this morning (1 December) after the company issued a stark profit warning.
Shares in MAB were changing hands for 596p at close of play yesterday but plummeted to around 428p earlier on Thursday (December 1) after the firm warned that its profits were likely to be “considerably impacted” by the fallout from former Chancellor Kwasi Kwarteng’s disastrous mini-Budget in September.
The company’s shares have since recovered somewhat to 508.7p at Thursday lunchtime.
MAB said Kwarteng’s announcement had created a “significantly heightened level of uncertainty” which had a “direct negative impact” on the mortgage market, with business levels in October and November some 50% below expected levels.
In a statement earlier today, Peter Brodnicki, CEO of MAB, said: “The consequences of the so-called mini-Budget have been quick and far-reaching. Overnight our market moved from being fairly stable and reasonably confident, to almost the polar opposite. The sudden and unexpected pace of mortgage rate increases, combined with the tightening of mortgage lending criteria, have resulted in some customers pausing both home-moving and re-financing plans.”