FINANCE

When You Can't Refinance With Your Own Bank

Thursday 14 January 2010, 9:48AM
By Kent Finance Ltd
717 views


It is a common trend clients with mortgages to a  Bank not being able to top up or refinance their home or property loan. We are getting alot of new customers in this situation thinking it was straight forward, getting a new loan and finding they didn't fit the banks criteria of debt servicing ability.

We had one client that owed $165,000 to their bank against a registered valuation and CV of $730,000 get declined as his income didn't meet the banks criteria. They were not in arrears or defaulted in their repayments so didn't understand that the security in the property wasn't enough for the bank.

In this situation Kent Finance Ltd has helped the client get a twelve month loan either in behind the bank first mortgage with enough funds to help debt service the new top up loan for a period.

What lenders are cautious about is people using their property like an ATM, every time there is an increase in property values people tend to borrow against or releverage the property for more funds.

When refinancing for either Debt consolidation, another property, holiday, vehicle or renovations you must have a strategy to repay  the loan otherwise you end up having to sell or are under pressure and thats not a good position to be in.

Talk to Kent Finance Ltd if you need extra funds but also remember a personal loan normally has a short period to repay so be prepared for extra repayments above your current loan.

Contact: Amanda

Ph 0800 80 90 60

amanda@kentfinance.co.nz

www.kentfinance.co.nz