September 17, 2021

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Mortgage News

UPDATE 1-UK’s Foxtons reviews options for mortgage broking arm including sale

(Adds mortgage broker details, background)

July 21 (Reuters) – London-based real estate agent Foxtons Group announced Wednesday that it is reviewing strategic options for its mortgage brokerage business Alexander Hall Associates Ltd, including a possible sale.

Mortgage volumes were hit hard in the early months of the COVID-19 pandemic before government incentives, including a tax exemption and a mortgage guarantee system, triggered a turnaround in the UK housing sector and mortgage business.

Alexander Hall advises on mortgage brokerage and, in addition to rescheduling advice for customers’ existing properties, also supports the subscription of mortgages for new real estate transactions.

News website Mortgage Solutions reported Tuesday that Foxtons was in the process of finding a buyer for Alexander Hall, adding that several third-party mortgage advisors had been contacted on behalf of the real estate agent in the past two months.

Foxtons mortgage brokerage revenue decreased 5% year over year in 2020 due to lower market volumes.

Foxtons, which helps people with both rentals and sales, strengthened its presence in London with the purchase of Douglas & Gordon earlier this year. (Reporting by Aby Jose Koilparambil in Bengaluru; editing by Uttaresh.V)