Until recently the only mortgage provider for those with adverse credit, arrears or a Bankruptcy against them was an Australian lender called Liberty Financial. Liberty do a great job but their pricing is high and their Valuation requirements mean that unless you have a property in a main urban centre the chances of being approved are slim.
That’s all changed with a New Zealand owned funder offering up to 80% for owner occupied houses at rates which reflect good payment history once approved. There is a loading of 2% to the standard variable rate but only for 12 months assuming good payment record. This is significantly lower than Liberty and gives many people that ‘second chance’.
Income has to be verified (last 2 payslips) last 2 months bank statements showing income being credited, details of two next of kin (names, relationship and contact details) and a good letter of explanation.
‘This is a very welcome addition to the range of products we can offer’ says Jeff Royle of iLender, ‘because of the GFC many people have found themselves with entries on Baycorp and until now mortgages were either unobtainable or too expensive’.
This is an excellent alternative if the Bank says no and in some cases gifted deposits are acceptable too.