Strong housing market drives Mike Pero Mortgages

9 February 2006

Strong housing market drives Mike Pero Mortgages result

New Zealand's largest mortgage broking company, Mike Pero Mortgages, has recorded a strong half-year profit driven by record monthly demand for residential mortgages.

"We put through around $130 million a month in mortgages during the six month period ended 31 December, well up on the $107 million a month a year earlier," says Mike Pero Mortgages Chief Executive Officer Jeff Staniland.

The profit for the six months was $952,231, up 19 percent on the same period a year earlier, on turnover of $9.2m, up 44 percent from the previous year.

The increased profit has resulted from a combination of more Mike Pero Mortgage brokers throughout the country, higher loan values, and an increased number of loans.

Despite predictions of a cooling housing market, the company sees continued strength in the mortgage market over the coming months. "Summer and early Autumn are traditionally active times for the housing market," says Mr Staniland.

"In addition, there are many fixed rate mortgages that were written during the height of the housing boom which are now due to be renegotiated." Both of these factors are expected to keep Mike Pero Mortgages brokers busy over the next few months.

"We do expect, however, that the background economic environment of higher interest rates, a slowing housing market and slowing economy, will be a drag on the mortgage market at some point. Mike Pero Mortgages is well positioned, however, to weather any downturn with a very strong reputation and brand and more than 50 brokers operating throughout the country," concludes Jeff Staniland.

ENDS

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