Silver lining seen in swell of mortgage renewals

Mike Pero Mortgages is hoping the large number of fixed-interest mortgages due for renewal this year will help to offset the impact of the slowing housing market and shaky economy.

The listed mortgage broker delivered a positive half-year result yesterday - up nearly 20 per cent on the same period last year. In the six months to December 31 it notched up a profit of $952,231.

Chief executive Jeff Staniland said the result demonstrated that the company's growth strategy was delivering higher earnings for shareholders.

The result was in line with the full-year earnings forecast of $1.9 million made in December.

The strong trend in new mortgages continued through the period with an average monthly origination of $130 million. This was driven by a combination of more mortgage brokers, higher loan values and increased loan numbers.

High interest rates and a slowing housing market were expected to drag on the mortgage market, Staniland said.

But a large volume of fixed mortgages, taken out two and three years ago during the height of the housing boom, were due to be renegotiated this year.

That and the traditional strong summer and early autumn selling period would help to ensure continuing demand, he said.Liam Dann