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With Bank's maintaining rigid controls on new and existing lending, non bank lenders are fronting up when times are tough. |
If your bank has said No or is making life difficult you may now need the help of a non Bank Lender or Private Lender.
As the economists talk of green shoots and increasing signs that the recession is coming to an end, we are finding that the banks are still very much entrenched in conservative credit policy to protect themselves from any further bad debts.
Whilst this may be considered a wise move, it has a serious impact, firstly on the growth of new business or property ventures and secondly with the person who needs a hand consolidating debt, a loan repayment holiday, bridging finance or some breathing space to allow for the sale of a property.
We are working with a number of non bank lenders who operate in the space between a Bank and a Finance Company. Too often when the bank says “NO” we are seeing clients directed by friends or even existing Mortgage Brokers straight to Finance Companies or Merchant Bankers and paying onerous rates and fees.
Whilst there is a place for Finance Companies, and we use them from time to time, a lot of business does not need to be placed with them.
Often we can direct a client to a non Bank or Private lender with interest rates as low as 9% and saving you in excess of 4% in interest costs and fees. On a $300,000 loan this would be in excess of $12.000.00 over a 12 month term!
If your Bank has said “NO” do not despair and do not be pressured into accepting a Finance Company offer that seems unreasonable.
Our Non Bank Lenders include private investors, who use their solicitor to target investments, private individuals, who we have been deailing with direct for in excess of 10 years and companies, who have a combination of their own capital and a funding line. In some instances second mortgages are also available. With the demand fo Non Bank Loans ever increasing we have a dedicated Non Bank website with an online enquiry form.
Talk to us right now for free advice.
Contact us for more information
nonbank@firstratemortgages.co.nz
or Freephone 0800 178 7283 (0800 1ST RATE)
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