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Not meeting Main Bank criteria??

January 26th, 2016.

With the tightening of Bank rules bought on by the RBNZ changes as well as an increase in borrowers or situations who don’t quite fit into the standard bank space I thought it may be a relevant time to raise a few cases we have funded over the last month with non-bank lenders.

 
 
1. Funding to allow completion of spec houses

One of our customers is in a strong asset position with relatively low gearing, however has no income outside of rental streams meaning that they aren’t meeting any of the banks servicing requirements. She had two spec houses under way but was going to run out of capital prior to completion. We raised funding on other property assets to provide the capital required so the properties can be completed and then sold for a tidy profit.


2. Business funding

Another client of ours has a rapidly growing business which has only just started trading and because of this the main banks were not willing to provide any funding. We approached a non-bank funder we are dealing more and more with who was happy to lend against the applicant’s property because of its relatively low gearing.

3. Project funding

We had a situation recently where a client had managed to get under contract a property which appears to have good long term potential under the Auckland Unitary Plan however the property in question needed a large amount of remedial work in order to recognise its potential. On top of this while the borrower had a good asset position they also did not have a sufficient income stream to increase lending facilities through a mainstream Bank. We were able to arrange financing to complete the settlement of the purchase and have just completed a top up to allow further funds for development of the property.
 


Note that if you have access to equity or have a reasonable deposit then we have access to a number of funders who may be able to assist.

Please email on 
info@krispedersen.co.nz with any queries that you may have.

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Kris Pedersen Mortgages Limited
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