Flexible Mortgage Helps Ease the Squeeze

*Global Home Loans Media Release *

Flexible Mortgage Helps Ease the Squeeze

Borrowers struggling to pay the mortgage can ease the financial squeeze by deferring all or some of their interest payments for up to five years through a new Flexi Loan product from Christchurch-based independent mortgage lender Global Home Loans.

For example, the fixed interest rate may be 9% but a borrower could choose to pay a lesser amount, say 7%. Repayments are calculated on this lower rate. The deferred interest is added to the balance of the loan.

The governing condition is that the loan including accrued interest can’t exceed the maximum loan to value ratio allowable at the time the loan was taken out. Clients must also meet all other lending criteria.

Global Home Loans Director Louise Ledger introduced Flexi Loan this month in response to people telling her they had to sell their property because they couldn’t afford the new interest rates.

“Initially I was reluctant to offer the Flexi Loan because it effectively eats into people’s equity. But many New Zealanders are over committed and are facing having to sell. That’s a real problem because once you get out of the property market it is so hard to get back in.”

Owner-occupiers or investors can take out a Flexi Loan.

Ledger established Global Home Loans in 2000 to provide South Island borrowers with a credible alternative to banks. The company now lends money to people all over the country and is dedicated to treating customers like people not numbers. It offers specialty products, including self-verified income for self-employed people and 100% funding for people without a deposit.

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