Last checked at 15 Sep 2020 07:00
15 September 2020
Mortgage Advice Bureau (Holdings) plc
("MAB" or the "Group")
Launch of Mortgage Advice Bureau Later Life
Mortgage Advice Bureau (Holdings) plc (AIM: MAB1.L) is pleased to announce the launch of "Mortgage Advice Bureau Later Life" (or "MAB Later Life"), a new and exclusive strategic alliance with Key Group. This new alliance enables MAB to enter a specialist and growing market with a leading proposition both to advisers and to customers.
Key Group is a leading integrated later life lending business covering product manufacturing, advice and intermediary services including product sourcing tools, compliance and training. Key Group was formed over 21 years ago and has helped over-55s release more than £5 billion of equity from their properties by taking a holistic view of their personal circumstances to achieve the best outcome for them. Key Group will provide its market leading infrastructure and regulatory umbrella to MAB Later Life.
MAB Later Life comprises a panel of four lenders including more2Life (Key Group's lifetime mortgage lender). All lenders are members of the Equity Release Council ("ERC") and all products meet the ERC's standards.
The first phase of the strategic alliance involved the distribution of later life mortgage products through a small pilot group of existing specialist MAB advisers, all working under the MAB Later Life brand. MAB is now extending this new opportunity to firms currently outside of the Group that are looking for a best in class proposition to capitalise on their specialism in this sector.
This strategic alliance broadens MAB's addressable market in an important growth segment which is highly intermediated. Customers need comprehensive financial advice more than ever at this important point in their lives and advisers want to provide customers with a range of considerations and choices. This includes options to release equity in order to supplement often inadequate pension provision or provide inter-generational assistance to family members. It is estimated that the total value of secured and unsecured debt for over-55s will rise, from about £211 billion in 2020 to £300 billion in 2030(1). It is also estimated that the housing wealth of the over-55s is worth £2.5 trillion(2).
Commenting on the new launch, Ben Thompson, MAB's Deputy CEO, said:
"Broadening our addressable market to include products for the over 55s is an important part of our strategy, and a logical extension to our proposition. This exclusive strategic alliance provides MAB brokers with a greater range of products to enable them to compete at the highest level. Specialist advice is a key differentiator for intermediaries, and Later Life represents a clear opportunity for them to service new customers and extend their relationships with existing ones.
"Those over the age of 55 today typically have large amounts of potentially untapped wealth that if released could transform their retirement. Providing the right advice to customers has always been a cornerstone of MAB, and we are delighted to partner with Key Group to provide customers with help, reassurance, and advice on an important lifetime decision."
1 Centre for Economics and Business Research and more2life, 2020
2 Swiss Re Term and Health Watch 2017
For further information please contact:
Mortgage Advice Bureau (Holdings) plc | Tel: +44 (0) 1332 525007 |
Peter Brodnicki - Chief Executive Officer | |
Ben Thompson - Deputy Chief Executive Officer | |
Lucy Tilley - Chief Financial Officer | |
Numis Securities Limited (NOMAD and Broker) | Tel: +44 (0)20 7260 1000 |
Stephen Westgate / Hugo Rubinstein (Corporate Finance)
Media Enquiries: investorrelations@mab.org.uk |