NAB Won't Finance. Options?

Hi All,
I spoke with NAB about 6 months ago with regards to financing another investment property. I have a home loan and 3 IPL's. It was just a general chat so no approval or anything.

Anyway spoke to them again this week and apparently the "rules have changed" and I can't even afford what I have got!!
Couple of questions:

1) Now that I can't even afford the money they have already lent me I assume as long as repayments are met etc they will leave me alone?
2) Any lenders out there that are less conservative than NAB when it comes to affordability?

Many thanks!

 

Really depends on the scenario - Westpac and St George can work well but above those guys you are looking at Pepper and then Liberty above that provided LVR is sub 80%. If its over 80% then the rules change.

Ps they are right in that lending has changed dramatically over the past 6-18 months and will continue to change/become more conservative.

 

You probably still have options outside NAB but it will depend very much on your current income.

They will leave you alone as long as you keep paying, so all good there

Are your loans crossed with them? If you've been dealing direct the odds are very high - it might be worth looking at restructuring before you buy another IP. It may be impossible after that point.

 

Thanks. No I was very clear about crossed security - I did NOT what that.

I have heard Liberty mentioned a couple of times but generally not in glowing terms. I think the comment was "lender of last resort".

 

There are more generous lenders available before using Liberty.

Liberty is an ok lender - there are fundamentally 2 issues which I have with Liberty.

1. They don't offer fixed loans properly (yep it goes to credit and they decide whether they want to give you a fixed rate and the rate!) so if you want to hedge your loans later you may not be able to.

2. The dont offer construction lending (not a biggie in most cases)

Just note that if you are going with Liberty due to servicing then you are snookering yourself with that lender so factor in higher rates when running your cashflow analysis.

 

Thanks for that. Just another question (and excuse the paranoia). Liberty are a smaller company than most mainstream lenders (I assume) so what happens to my property and loan if they go bust?

 

Often their loan book (depending on the type of book) is sold to another lender and the rate may or may not increase.

Arguably Macquarie and Citibank were much bigger lenders during the GFC and they either shut up shut on their lending book and Macquarie jacked up their rates to offload their book (which they seem to be oh so quietly now).

 

In general one of the larger lenders would buy the book, at a discount to market value.
But first that rate which you bought off them doubles.
Then the new owners review the book, and add a few more points for their risk margin.

Your cheap option just became a very expensive option.

They also dont need to go belly up for this to occur.

Blacky

 

Damn - beat me to it!

 

I refi,d with Liberty last year, 3 loans.Dont know about last resort as im not on the bones of my bum, they filled a void in the market i needed.

 

My problem with them is they want me to pay them back

 

what does it mean?
i thought all lenders want us to pay them back

 

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