Ben.M

Have been speaking to an NZ Mortgage Agent re getting a mortgage in NZ but because I'll be starting my own business and have no track record in NZ the options are limited and the interest rate higher than the norm.

Probably a silly question but I'll ask it anyway... are there any lenders in the UK that would be willing to provide a mortgage for a property in NZ?

Thanks,
Ben

southerner

Ben - I searched on Overseas mortgage and got HSBC + many mortgage brokers. I also recall that Abbey National used to do this sort of thing - might have been for one of those couples moving to France in TV programme - No Going Back.

So it is an option, but I would think it will cost more than getting something local. But certainly worth looking at if you want to include UK collateral or income records in your application.

I heard both National Bank and ASB are really good for immigration. If you have used Lloyds Bank in UK that might count for something with National Bank (they are the same company).

S/pick

barclays bank, they offered us this option when were thinking about changing our mortgage to them. Good luck it's worth a try.

Ben.M

Thanks guys. Will look into it and see how it pans out...

Ben

Gra.B

I'm sure some people have got mortgages over there before getting a job. National Bank may have been the lender..

Perhaps try them direct? Especially if you have a hefty deposit..

Gra..

Sarah2004

Hi Ben,

I contacted National Bank a few weeks ago with regards to getting a mortgage on a house in NZ while we were still in the UK, my inquiry was about an investment property in particular but the following response outlines information for overseas buyers requiring mortgages and may be of some help hopefully. The big problem with this is as a new customer you have to be in the country to sign for opening the account and withdrawgin the loan.



Thank you Sarah for your home loan enquiry.

The National Bank has a range of home loan products for both
residential and residential investment properties. We can tailor a home
loan package to suit your individual needs.

Please refer to our internet site which details our current home loan
product:

Http://www.nbnz.co.nz/personal/product/

Generally the Bank requires overseas borrowers to meet the following
criteria:

* Equity of at least 20% in the property (although in the case of
apartments or terraced housing more equity may be required).
* Servicing of the loan and all other financial commitments to be met
from 35% of your gross income.
* For residential investment properties the Bank will use 75% of the
rental income for loan servicing.

If the servicing of the loan is not fully met from the rental income
the Bank may require additional funds to be held on term deposit i.e.
generally this amount equates to six months loan repayments.

The National Bank requires all new customers of the Bank to sign an
account operating authority in front of a National Bank staff member,
prior to any loan being drawn down. We also need to establish how the
loan documents are going to be executed to ensure that this meets our
requirements.

To discuss your Home Loan options you can:

* Continue to correspond by email.

* Contact us by return email providing us with a contact phone number
and a time between 8 AM and 7 PM weekdays NZ time, for a representative
to call you and discuss your specific needs.

* If calling from the United Kingdom you can contact us toll free on
0800 731 1476 between the hours stated above. Please ask to speak to a
Lending Specialist on extension 8219.

* If calling from outside the United Kingdom you can phone our
specialists at our Direct Branch on 64 9 526-3730 between 8AM - 7PM
Monday to Friday.

To apply for a home loan or pre-approval please print out and complete
the application from the above site (under home loans). We will require
additional information once a property has been found i.e. sale and
purchase agreement, verification on rental etc.

This loan application together with verification of income can be sent
to the following address:

The National Bank of New Zealand Limited
Direct Branch
P O Box 62515
Central Park
Penrose
Auckland
New Zealand : Attention Kathleen

Alternatively you can fax the application to 64 9 526-3731 for us to
assess the proposal - however please note we will still need the
original posted to the above address.

On receipt of your application we will respond to you within 24 hours.
Any letters of introduction or bank references you have may assist us
in the approval process.

Ben.M

Thanks Sarah but I have the opposite problem... I will be in NZ and able to sign everything but as it is a new business I can't get a mortgage based on a multiple of salary. It looks like the only way to do it is pay a large deposit and give the lender a lien against a large cash deposit.

I was thinking that if I could get a mortgage from a UK lender based on my previous earning capacity in the UK and give them a lien on a cash deposit in the UK then maybe I could avoid having to transfer all the proceeds of my UK property sale to NZ at the current unfavourable rates and take advantage of the slightly better mortgage rates in the UK. It's a bit complicated though so I'll probably end up going with plan A. Either that or rent for a while and hope the exchange rates picks up faster then property prices!

Wish someone could wave a magic wand and return the fx rate back where it was last year!

Ben

Don

Ben - I thought about a lien on bank deposit too (thinking of starting my own business and wondering abouit loan/ mortgage) but the reply from a friendly bank mgr (National Bank too) I discussed this with in NZ was not v encouraging. He said the bank normally needs proof of income, not proof of failsafe ability to pay back the loan from capital. So they would normally only give a loan based on the interest income from the deposit + other income. If you were buying an existing business, that would be different as the a/cs would give reasonable evidence of expected income.

Ben.M

My mortgage consultant has had discussions with a number of lenders and they have indicated that it would be possible using a lien in the region of $50,000NZ for 12 months, or possibly as little as $20,000NZ if they approve the business plan. Maybe that's the advantage of going through a broker rather than approaching a bank directly?

Ben

smithone

Ben

On the radio this week in Auckland a company called Wizard have been advertsing mortgages for the self employed.

Their website is www.wizard.co.nz.

I have no expereince of their service but though I'd post the link

http://www.ewizard.net.nz/