One of Britain’s largest mortgage brokerages has revealed it will enter the Australian home loan market and begin trading before the end of the year.
Mortgage Advice Bureau (MAB) chief executive Peter Brodnicki revealed to a delegation of Australian mortgage professionals at The Adviser’s UK Study Tour in London earlier this month that he would be entering the Australian mortgage market through a joint-venture agreement as the group looks to grow its footprint beyond the United Kingdom.
MAB is one of the largest mortgage brokers in the UK with over 800 brokers and annual settlements of approximately £10 billion ($16 billion). The company listed on the London Stock Exchange in 2014 valued at £81 million ($130 million). Today the group is valued at approximately £178 million ($286 million).
Announcing MAB’s interim results on September 28, Mr Brodnicki said that in considering opportunities for extending MAB's distribution outside the UK, the group saw many similarities between the UK and Australian mortgage markets.
“MAB intends to establish a new joint venture in Australia, trading under the Mortgage Advice Bureau brand,” he said.
Mr Brodnicki explained that the joint venture will embrace “many of the proven systems and processes adopted by MAB in the UK, with centralised lead generation, and telephone and regionally-based advisers combining to deliver a comprehensive service to the Australian public.”
“We expect the new joint venture to be trading before the year-end,” he said.
With a focus on technology and branding, MAB has managed to grow into a dominant presence in the highly competitive UK mortgage market, increasing its market share by 20 per cent in the first half of 2016. To date, MAB has over 130 appointed representative firms and around 900 agency branches.
Mr Brodnicki said the brokerage will always seek to be an early adopter of new and emerging technologies which he believes will fast become a major differentiator between distributors and firms within the mortgage broking industry.
“The strong position that MAB has due to its proprietary MIDAS Pro platform will enable MAB to prioritise technology developments and roll out more robo-advice style initiatives in 2017,” he said.
“As a result we expect MAB's distribution to be able to compete at the highest level with new technology-led entrants, offering our customers the choice of how they want to research, receive advice and transact.”
Over the six months to 30 June the group increased its broker numbers by 13 per cent to 891.
The revelation of MAB’s plans to break into the Australian mortgage market come just months after a major UK-based real estate group began operating in Australia back in August.
Purplebricks, the UK’s fourth-largest estate agency which commands a 60 per cent share of the online market, now has four Australian locations — Melbourne, Brisbane, the Gold Coast and the Sunshine Coast, with Sydney, Perth and Adelaide to follow shortly.
More to come.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
Equipment finance lender Axsesstoday, which had been placed into ...
Head of Choice Aggregation Stephen Moore has encouraged brokers t...
Several leading brokers have suggested that APRA’s recent chang...