Fee-free mortgage adviser First Mortgage has been taken over by Aim-Listed rival Mortgage Advice Bureau in a deal valuing the firm at £20.6 million.
MAB takes an 80% stake in the Edinburgh based business, leaving 20% in the hands of owner Ian McGrail, who will stay on as managing director. His father Robert will step down as a director and sever ties with the firm.
First Mortgage was founded in 1997 and employs more than 90 mortgage and protection staff who advise customers through one of its 14 mortgage shops and over the phone.
Its presence is mainly in Scotland but it has been expanding south of the border.
In the nine months to 31 December, First Mortgage posted revenue of £10.2 million and pre-tax profit of £1.5 million, and had net assets worth £2.9 million and a cash balance of £3.5 million.
MAB said the deal will enable it to further grow its adviser numbers and market share, and grow First Mortgage’s business by introducing MAB's technology.
MAB managing director Ben Thompson 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."
