Mortgage Advice Bureau is expanding into Australia, with bosses saying it has yet to see regulatory change to same extent as the UK.
MAB announced to the London Stock Exchange today (9 December) that it has completed its investment in its new joint venture in Australia, MAB Broker Services.
It will trade under the Mortgage Advice Bureau brand and will offer independent mortgage advice, with protection at the core of its proposition, like the broker’s UK business model.
The initial introducer to MAB Broker Services will be Purplebricks Australia.
Peter Brodnicki, chief executive of the Mortgage Advice Bureau, said: “As in the UK, our model in Australia is all about the customer experience and providing consumers with the choice of how they receive information and advice, and how they transact.
“Average property prices and mortgage sizes are higher in Australia than in the UK, with procuration fees also higher.
“We see many opportunities for the new business, which will benefit from our wealth of experience in the UK.
“The intermediary sector in Australia is yet to be the subject of regulatory change to the extent seen in the UK.
“We anticipate that this is likely to happen at some point in the future, and we will be well positioned to take advantage of the opportunities that we would expect to arise.
“Against this backdrop, and with a partner of the quality and ambition of Mortgageport, our partnership with Purplebricks, and Steve Weston's continued involvement, we believe that the timing to test our expertise overseas in an attractive market couldn't be better.”
MAB has entered this new joint venture with Mortgageport Management PTY Limited, a mortgage manager and broker based in Sydney.
They have each subscribed for interests of 45 per cent in MAB Broker Services for a consideration of A$4,500 (£2,670) each, with the rest of the shares held by senior management of MAB Broker Services, including Darren Cantor, managing director (general manager director of Mortgageport), and Steve Weston, non-executive director.
Mr Weston is an Australian who is the former chief executive of mortgages for Barclays Bank in the UK and has had held senior positions in the mortgage operations of St George Bank and Challenger Financial Services in Australia.
MAB and Mortgageport will each be providing initial funding to MAB Broker Services via loans of A$0.25m (£0.15m) each and they will provide further loan funding to MAB Broker Services of up to A$0.25m each in the first year of trading if needed.
MAB's investment into MAB Broker Services has been and will be funded out of the company's existing cash resources.
The joint venture will leverage many of the systems and processes adopted by MAB in the UK, with centralised lead generation, and telephone and regionally based advisers combining to deliver a service to the Australian public.