Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Mortgage Advice Bureau Lowers Profit Forecast Amid Weak UK Housing Market
Mortgage Advice Bureau (Holdings) has reduced its full-year profit outlook by approximately £5 million, now expecting £38 million in profit before tax. The company cited weaker than anticipated UK house purchase activity and delays in new lead flows at its subsidiary, Fluent, as key reasons for the revision.
In a stock exchange note, Mortgage Advice Bureau (MAB) stated that the expected recovery in 2026 UK house purchase activity did not occur. Additionally, the rollout of new contractual lead flows at Fluent, a specialist lending broker acquired by MAB in 2022, has been delayed. As a result, MAB has cut its full-year profit before tax expectations from £43.4 million to £38 million.
MAB reported that adjusted profit before tax for the first half of the year is now expected to be approximately £14.8 million, which is slightly ahead of the £14.6 million indicated in its 23 July trading update. The company noted that an anticipated easing in interest rates and a gradual recovery in house purchase activity have not materialised.
According to figures cited by MAB, UK purchase transactions were 3% lower in the first seven months of 2026, and mortgage approvals for house purchases fell 15% year-on-year in July. The market remains predominantly driven by refinancing, with affordability constraints expected to keep activity weighted towards product transfers.
Fluent had been expected to benefit from new contractual lead flows following improvements to its mainstream first-charge mortgage proposition. However, the launch of these arrangements has been delayed, resulting in pilot costs being incurred before the expected additional revenue. MAB stated that these delays have pushed the expected profit growth from Fluent into 2027.
For UK letting agents and inventory clerks, these developments highlight ongoing challenges in the property market, with reduced house purchase activity and a continued focus on refinancing and product transfers.
Source: Mortgage Strategy