Depends where you are and how it's said. When I lived in Southampton it was very common and sounded perfectly normal: just a salutation with a roughly similar function to a pronoun. Just down the coast in Worthing it's hit and miss whether it sounds right or wrong. I've been called "mate" and it sounds fine whereas I've used it without thinking and been told in no uncertain terms that they're not my "mate". He May Be Your Dog But He's Wearing My Collar
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