Distressed customers face credit problems

0

According to an Auckland-based advisor, clients making mortgage deferral requests during foreclosure have been told their difficult situation will affect their credit rating.

Friday, September 17, 2021, 9:59 a.m.

Unlike last year, when the government and Reserve Bank loan deferral program gave borrowers leeway to request deferrals, lenders would take a harder line in this foreclosure.

There is no loan deferral program this time around, although Auckland has remained at Alert Level Four for a longer period than in early 2020.

According to Glen McLeod of Edge Mortgages, customers are being told that changes to their mortgage will affect future borrowing.

“In most cases, clients tell me that they are told it will affect their credit rating,” he said. TMM online.

Clients of mortgage advisers are encouraged to speak directly to the banks’ difficulties teams during this foreclosure, although some banks, including AIA Sovereign, allow advisers to assist them.

McLeod called for more help for borrowers as Auckland’s level four lockdown extends. The current alert level settings will be reviewed on Monday.

“It looks like this lockdown is being handled in a completely different way than it was last year,” McLeod said. “As the lockdown expands, it surprised me that no further help was offered. The government didn’t seem overly concerned this time around either. Therefore, the banks are not obligated to do anything. “

Tags: Loan

Comments from our readers

no comments yet

Log in to add your comment


Source link

Share.

Leave A Reply