The venture also expands MAB’s partnership with Purple Bricks which launched in Australia in September.
MAB CEO Peter Brodnicki has been working with Barclays’ ex-mortgage CEO Steve Weston, who has been appointed a MAB non-executive board director and researched the expansion opportunities in Australia to identify the eventual joint venture partner.
Sydney-headquartered Mortgageport, led by director Darren Cantor, is a direct-to-consumer mortgage manager, mortgage lender and mortgage broker.
The Mortgage Advice Bureau operation in Australia will partially mirror the UK model offering independent mortgage advice with protection alongside estate agency partnerships driving lead generation.
Brodnicki said: “This is yet another memorable milestone for MAB, albeit some 11,000 miles away. Both MAB and Purplebricks carried out extensive research before entering this market, and we both saw a big opportunity to bring a very new and customer-focused proposition to the Australian market.”
He added average property prices and mortgage sizes are higher in Australia than in the UK, with procuration fees also higher and trail procuration fees payable to brokers.
Fee charging and cross-sales are also far less common than in the UK which is an opportunity for the new business, said Brodnicki, and incoming mortgage regulation looks set to disrupt current market status quo.
Weston, who has already sold three mortgage advice firms in Australia including Plan, Choice and Fast mortgage brokers said: “I am delighted to be teaming up with Peter and MAB again. We have both driven significant innovation in our respective markets, particularly via the use of technology and the leveraging of big data, and we will combine our expertise with that of the team at Mortgageport to deliver a new, exciting and highly scalable new business.”
Weston said MAB is looking at the possibility of a network launch in Australia and added that technology and the holistic sales brokers offer in the UK will be among its key service differentiators.
Managing director of Mortgageport Darren Cantor, said: “MAB brings proven technology and processes to ensure customers have the flexibility to interact in a variety of ways, whether that be face to face, phone or digital. Whereas most of the current market participants specialise in one channel, MAB has been successful in delivering customer focused solutions on all fronts, which is a must-have for major digital disrupters such as Purplebricks.”
Michael Bruce, chief executive of Purplebricks said: “It is an absolute pleasure to be working with Mortgage Advice Bureau and Mortgageport to provide Aussie homebuyers with fantastic choice, first class service and a wholly better experience.”
MAB Holdings has over 900 advisers and became the first mortgage advice company to float on the UK’s Alternative Investment Market in November 2014.