Mortgage Advice Bureau Sees 16% Rise in Mortgage Completions Amid Market Challenges in H1 2026

Robust Completion Growth Amid Refinance-Driven Market Shift

Mortgage Advice Bureau recorded total mortgage completions of approximately a316.5bn in H1 2026, a 16% rise from a314.2bn in H1 2025. This growth occurred despite subdued consumer confidence and ongoing mortgage pricing volatility, which complicated the operating environment for customers and advisers alike. Completion figures include first charge mortgages, secured personal loans classified as second charge mortgages, later life lending, and bridging finance, reflecting the group's diverse lending activities.

The growth composition notably shifted from the prior year, with H1 2026 driven by strong refinancing activity, contrasting with H1 2025 where market expansion was primarily due to a 35% year-on-year increase in purchase lending ahead of Stamp Duty Land Tax relief changes. This shift towards a refinance-led market dominated by remortgages and product transfers has introduced operational challenges that management is actively addressing. The heavier focus on remortgages and product transfers typically results in lower protection volumes compared to purchase business, while mortgage pricing volatility required advisers to invest more time securing optimal outcomes, impacting adviser productivity.

Revenue Increase and Market Share Gains Despite Housing Market Headwinds

Group revenue for the six months ended 30 June 2026 grew 8% to approximately a3160m, up from a3148.2m in H1 2025. While revenue growth lagged behind the 16% increase in completions, this reflects the shift towards lower-margin refinancing activities. The company strengthened its market position, with MAB’s share of new mortgage lending rising to 8.3% for the five months ended 31 May 2026, up from 8.2% the prior year, and product transfer share increasing to 3.2% from 2.9%.

These market share gains are significant given the challenging environment and the shift towards refinancing, which involves different customer acquisition and adviser engagement dynamics compared to purchase lending. Average revenue per mainstream adviser remained steady at a374k in H1 2026 despite the product mix changes, indicating maintained adviser productivity and a resilient economic contribution from the adviser base during this transition.

Protection Segment Challenges and Adviser Growth

Protection policy volumes grew more slowly than mortgage completions in H1 2026, attributed to the increased focus on remortgages and product transfers, which generally generate fewer protection policies than purchase transactions. The additional time advisers spent managing mortgage pricing volatility and securing optimal customer outcomes also compressed overall adviser productivity. Protection products are crucial for profit margins and revenue diversification, making this a key operational challenge.

The mainstream adviser headcount increased by 3% to 2,194 at 30 June 2026, up from 2,135 at 31 December 2025, reflecting ongoing investment in recruitment despite market pressures. This figure excludes directly authorised advisers, later life advisers without mortgage and protection licenses, and advisers still onboarding. The growth in adviser numbers alongside stable average revenue per adviser suggests capacity expansion within the appointed representative network while maintaining economic efficiency. Management plans to focus on improving adviser productivity for the rest of 2026, emphasizing customer retention, enhanced protection contributions, and cost discipline.

Progress on Acquisition Integration and Profitability Outlook

In H1 2026, the group advanced integration of subsidiaries acquired in late 2025. Operational and commercial synergies from these acquisitions are expected to materialize progressively in H2 2026 and beyond into 2027. The phased integration reflects the complexity of merging new businesses while preserving service quality and adviser retention amid market uncertainty. This timing affected H1 2026 profitability, with full synergy benefits still forthcoming as systems and strategies align.

Adjusted profit before tax is forecast at about a314.6m, broadly matching H1 2025’s a314.5m. Margin compression stems mainly from the shift to lower-margin refinancing, slower protection volume growth, and the timing of acquisition integration benefits. The company expects 2026 profitability to be weighted more heavily towards H2, supported by acquisition synergies and management initiatives to boost adviser productivity. This indicates management views the current margin pressures as temporary, anticipating recovery as synergies and productivity improvements take effect.

Application Patterns and Fixed-Rate Mortgage Maturity Insights for H2

Before 20 May 2026, mortgage applications in the first 19 weeks were 15% higher year-on-year, driven by accelerated refinancing in March and April as customers fixed rates ahead of expiries amid economic uncertainty. However, applications declined 13% year-on-year in the following seven weeks to June end, resulting in a 7% year-to-date increase by June. This slowdown partly reflects earlier refinancing activity and broader market uncertainty.

The group has visibility over roughly 70,000 fixed-rate mortgage maturities in H2 2026, expected to drive refinancing activity and support second-half revenue and completion targets. This pipeline offsets concerns over weak purchase market activity. The company maintains a conservative outlook on housing transactions due to ongoing geopolitical and policy uncertainties. Detailed customer fixed-rate expiry data provides a competitive edge, enabling proactive engagement and higher conversion rates compared to competitors lacking such insights.

Operating Leverage and Cost Structure Changes Post-Acquisitions

The growing contribution from invested businesses has altered the group's cost structure, increasing operating leverage relative to revenue. While revenue seasonality between H1 and H2 remains similar to prior years, profitability in 2026 is expected to be more H2-weighted. This reflects integration of acquired subsidiaries that added fixed costs benefiting from revenue scale and anticipated synergy realization.

Management actions targeting adviser productivity improvements are expected to enhance profitability in H2 and 2027, focusing on customer retention, protection growth, and cost control. The company’s technology platform and data capabilities support these goals by providing advisers with customer insights and engagement tools that foster deeper relationships and cross-selling. Ongoing integration efforts will unlock further operating synergies as systems and processes consolidate, benefiting profit and loss through late 2026 and into 2027.

Full-Year Outlook and Strategic Positioning

The board expects full-year 2026 results to align with forecasts. Founder and CEO Peter Brodnicki highlighted a resilient H1 performance, with mortgage completions up 16% and market share growth in both new lending and product transfers. He noted the market remains refinance-driven, with remortgages and product transfers dominating, while purchase activity recovery remains subdued. This represents a significant business mix shift compared to H1 2025, requiring tactical adviser engagement and profitability adjustments.

Management’s confidence in the full-year outlook is supported by strong H2 mortgage maturity visibility, progressive acquisition synergies, and focused initiatives to enhance adviser productivity and profit conversion. The company demonstrates operational and financial strength by adapting to market conditions with emphasis on customer retention, protection performance, and cost discipline. This balanced strategy addresses near-term refinance market challenges while leveraging the company’s technology platform and market position for long-term advantage.

Technology Platform and Appointed Representative Network Strength

Mortgage Advice Bureau operates a leading UK property finance platform connecting customers, advisers, lenders, and insurers throughout homeownership. The company delivers personalised mortgage and protection advice via its proprietary platform, underpinned by deep customer insights and a data-rich digital framework. Through its Appointed Representative (AR) partner firms, it supports over 2,100 advisers providing expertise in mortgages, specialist lending, protection, and general insurance. This intermediary model enables scalable distribution without the full cost burden of employed advisers, offering competitive advantages in cost flexibility and reach.

MAB supports AR firms with proprietary technology and services including adviser recruitment, lead generation, training, compliance auditing, supervision, and digital marketing. This infrastructure creates barriers to competition by enhancing customer digital engagement and adviser productivity. The company’s extensive customer data enables proactive communication about refinancing and product opportunities, a key advantage in a refinance-led market where frequent customer contact drives conversion and transaction values.

Market and Regulatory Environment Challenges

The mortgage intermediary sector faces challenges from subdued consumer confidence and volatile mortgage pricing, requiring advisers to invest more time per transaction. MAB’s experience reflects broader sector trends, with purchase lending remaining weak relative to refinancing. Ongoing geopolitical and domestic policy uncertainties dampen housing market confidence, prompting conservative purchase market assumptions in guidance.

Regulatory oversight and compliance remain critical, with refinancing activity presenting distinct adviser conduct obligations compared to purchase business. The company’s consistent profit conversion across business types evidences effective risk and compliance management. Integration of acquired subsidiaries adds regulatory complexity, requiring uniform compliance standards and customer outcomes across the group.