Known for its mortgage managing and broking facilities, Mortgageport has announced an expansion into the Australian lending market.
Established last week, Mortgageport has announced the launch of its own residential mortgage lending business, Mortgageport Home Loans.
The launch of the lending business comes after Mortgageport concluded a round of capital raising worth $2.5m in September, which will act as the first loss capital for the new venture.
Speaking to Australian Broker
, Mortgageport managing director Glenn Spratt said he believes there isn’t enough variety within the lending market at present.
“My view is that there’s probably not enough competition in the mortgage lending market in Australia,” Spratt told Australian Broker
“That’s been evident by the fact that the major banks haven’t been passing on the full interest rate cuts to borrowers and that’s despite the fact that if you look at their financials their net interest margins really haven’t been affected as much as what they claim,” he told Australian Broker
Spratt said Mortgageport Home Loans is expected to issue finance as early as this week, and while it may not be the biggest player in the market, he believes there is a place in the market for the new name.
“We’ll start writing loans under our own name from [this] week. We're going to roll it out slowly to get it spot on," he told Australian Broker
"We’re not trying to be the biggest lender in the county, that’s not what we’re about. We’re more driven towards delivering the right customer experience."
“At the moment we expect our volumes to run at about $100m a month.”
Spratt said Mortgageport Home Loans would be looking to innovate in both product offering and the loan writing process, which he believes will be made easier by the services Mortgageport already offers.
“Rather than just having a one line product and being a mortgage lender, or mortgage broker, or mortgage manager, we can combine it all under one roof.
“Particularly with our joint ventures, like the one we’ve got with McDonald Jones, it’s going to give us the ability to streamline the customer experience.”
Mortgageport last month announced it had partnered with McDonald Jones Homes to launch MyChoice Home Loans
, a mortgage broking firm specialising in construction finance.