nell m

Hi - we have a property in NZ that we own outright, it's currently rented out and we intend to live in it when we move out there.

We've spotted an investment property that we'd like but would have to get a buy to let mortgage as we have all our money tied up in the other property.

The house we already own is worth almost as much as the new property and the projected rental income (carried out by our estate agent there) would more than cover the mortgage repayments.

We dont have visas yet so I dont think we could get finance from the NZ end and we intend to move over to NZ the first chance we get - so we're wondering how keen a uk bank would be to lend us the money.

We've got an appointment with the bank to discuss finance, but was just wondering if anyone here had any experience of this in the meantime.

Don

National Bank wanted to see our PR status before they would lend. However, I believe they and other NZ banks might show a great deal of flexibilty on this according to circumstances (eg your impending PR status/ deposit/ equity in other property they might put a lien on).

We found the NZ banks very ready to lend and intelligent discretion was used by them.

nell m

Thanks Don - at least theres hope then!

Were the banks over there ok with you leaving the country to sort your stuff out?

Don

Yes - they asked our plans (about returning etc) and gave me (as I requested) non-resident withholding tax status on a deposit (2% tax) as I wasn't in NZ long enough to become tax resident and currently I will argue (if IRD ask) that I have no enduring interest in NZ (our plans are uncertain as yet). Therefore although I own a house out there I qualify as a non-resident landlord and will file my tax return accordingly.

The mortgage interest rate was unchanged, ie not put on a commercial basis.

nell m

Thanks again Don - is there a chance you may not go back then?

Incidentally - which bank did you use?