THE MORTGAGE EXCHANGE

The Mortgage Exchange Ltd. specialises in providing unbiased, individualised, and customised mortgage advice to each client. We oversee the entire application and completion on our clients’ behalf and provide guidance and support throughout the purchase or re-mortgage. We work with reputable professionals and can recommend surveyors and solicitors who have a track record of providing services of the highest calibre.

Our dedication to providing a superior service coupled with our highly skilled staff that can provide leading advice has resulted in the growth of the company to date. Mortgages are far more challenging than they initially seem. It takes time and expertise to understand which rate, length, lender, features, and insurances to consider. Our team make the challenging simple.

Our staff thoroughly research the market, and we provide mortgages from more than 55 of the best lenders in the UK. We pride ourselves on offering quick and easy turnarounds for mortgages or remortgage. We also offer intermediary exclusive interest rates which can’t be accessed by the public directly. I am delighted to bring you the opportunity to invest as we enter a phase of expansion.

Credit commentary:

The director is providing a personal guarantee, this means that if the business fails the director becomes personally liable for the loan. The director is a homeowner, however, this does not ensure there are sufficient assets should the loan need to be recovered. There have been no CCJs for the business or director. The Equifax score and grade, on which we base our assessment of risk, are based on the November 2021 filed accounts. We have performed our assessment on recent financial information, including the May 2022 and November 2022 management accounts, which were not available to Equifax. The 6-month May 2022 management accounts show that pre-tax profit was £17,088 and net equity was £44,805. The 6-month November 2022 management accounts show that pre-tax profit was £17,673 and net equity was £62,478. The bank statements demonstrate reasonable affordability and the accounts remain well in credit.

Inflation Risk:
The Mortgage Exchange Ltd’s business model is based on re-mortgage and debt consolidation. Therefore, with an increase to inflation, there has been an increase in business as a direct result of these increases. Their income is derived from broker fees, procuration fees and protection commission. Thus, due to the high margins from each application, the increase in inflation is increasing profit as a result of the increased business volumes. Their typical demographic of client seek professional advice on how they can restructure their finances to increase their monthly disposable income to allow them to sustain the increased cost of living. With the energy price guarantees cap being raised at end of March, along with fuel and food increases, their service has never been in more demand. The company has been trading for almost 3 years now, so several of their clients who took out 2 and 3 year fixed rates are back for renewal, generating repeat business without any marketing costs incurred. Their current client bank has approximately 1200 clients. The business also receives new business from referrals from existing clients. The Mortgage Exchange pride themselves on their customer service and speed of completion, which is demonstrated by their good Trustpilot reviews. From a business expense perspective, the company has their energy and rent on a fixed payment for the next 2 years.