Bad credit rating

[rocketred]

My partner and I have 2 properties between us ,1 in each of our names,and have improved the equity in one of these ,the 1 in my name, and have decided to use the extra equity to purchase another rental.However some poor choices 12 months ago have resulted in 2 baycorp defaults which appear to be stopping me receiving any additional funds from my bank.The amounts added were under 500 dollars and were cleared immediately.My partner has no credit issues.Any advice ?

[brokerman]

Unfortunately the Banks will probably all be the same as they take the stance that a Baycorp entry means you (or anyone) has been financially careless. If your own Bank won't help then try www.themortgagelender.co.nz as a non-Bank lender might be more accommodating. It will also come down to servicing, loan to values and property location.

[rocketred]

Thanks,will sound them out and post their response

[MoatMaster]

If proposed LVR over 80% then banks not really interested. If below that & servicing is not a problem then you shouldn't have any problem. They will look at overall picture, including reasons for the credit issues arising. If these were isolated and paid off & no problems since then your chances are good. If this is case & having problems then time to leave your bank

[rocketred]

Thanks.LVR is 77%-credit issues were isolated and over 12 months ago with no other problems since.Both myself and my partner have good government jobs with good incomes so servicing is no problem.Bank has a new manager with no banking experience but lots of business experience-she could not even manage to do an online credit check without ringing someone to help her -this should have rung alarm bells !!Will be talking to a Mortgage Broker this week,Thanks.

[MoatMaster]

great but if you don't mind tip - have been in the business for quite some time - find one that you can establish a really good rapport & understanding with - then make them do their job. A good broker is worth their weight in gold - one based solely on commission is no better than the greenie at the bank.
If you get one that only asks what do you earn & what do you own - without asking what your objectives are, then find another one.

[brokerman]

If proposed LVR over 80% then banks not really interested. If below that & servicing is not a problem then you shouldn't have any problem. They will look at overall picture, including reasons for the credit issues arising. If these were isolated and paid off & no problems since then your chances are good. If this is case & having problems then time to leave your bank

National Bank just declined an 80% deal due to an $80 power bill on Baycorp! Good servicing, no other entries and an existing customer too!