Mortgage Advice Bureau chief executive Peter Brodnicki says the acquisition of Mortgage Talk will allow the brokerage to boost its share of the newbuild market.
MAB bought Mortgage Talk this week in exchange for shares in the MAB Group. MT chairman Peter Birch will join the MAB board as the second-biggest shareholder while Brodnicki will continue to run the company and will keep the majority stake in the MAB Group.
MT, which Brodnicki estimates gets around a third of its business from the newbuild sector, will no longer be a standalone firm.
The combined group will have over 500 advisers and expects to process over £4.5bn of mortgage applications this year.
Last week, MAB reported 52 per cent rise in profit for last year to £1.9m from £1.25m in 2010.
Brodnicki says: “In the newbuild sector, the developers only work with a very selective number of brokers and Mortgage Talk is probably the best
newbuild broker in the market. We are going to expand quite significantly.”