international mortgages

new zealand

Essential information for buying properties in New Zealand

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

It is of paramount importance to seek independent advice from an overseas solicitor.

You need to ensure that you will have full title to the property on completion and that you have the appropriate documents available for the lender.

It is essential that you take appropriate independent legal advice before making an offer on a property, as this is done in writing and once it is signed it is legally binding.

You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying a New Zealand property. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer. These associated fees/taxes are typically between 10% - 15% of the properties purchase price.

Please be aware that the solicitor or notary may be incorporating costs for assigning the mortgage within his charges, and you should establish the actual cost before proceeding with a loan application.

Note that a ‘Power of Attorney’ may be required by the lender (resident in New Zealand), and we also advise you to make the necessary arrangements etc.

Properties can be purchased in the following entities.

Individually or in joint names
In a New Zealand Family Trust name
In a New Zealand Limited Company name

Eligibility and criteria

We arrange loans in either NZ Dollars or Sterling; however other currencies are available if your salary is paid in that currency
Repayment and Interest only loans are available
The maximum loan to value is 70%
The maximum term is 30 years – available to age 70
The minimum loan amount is £100,000 with no maximum
All schemes require full documentary evidence of income – ‘self-cert’ mortgages are not available.

Affordability

To qualify for a mortgage in New Zealand, a calculation is used to establish whether you can afford to maintain the mortgage repayments. This will automatically happen when you complete our enquiry form and we will not charge you for this service.

For example if your net joint income is £3,000, existing UK mortgage is £500 per month, existing loan payments of £100 per month and the New Zealand mortgage is £350 per month. This gives you an affordability ratio of 31.6%(£500 + £100 + £350) divided by £3,000 OR if, for example, your gross annual income is £100k per annum we will use 5 x £100k, minus any existing mortgage/other existing debts. For example, £100k per annum x 5 = £500k minus existing mortgage borrowing of £75k and no other existing debts, we could therefore lend £425k.

The amount that you can borrow is also restricted by the maximum loan to value as mentioned under Eligibility and criteria.

Proof of income requirements

If you are employed:

Your last three month’s payslips
Your latest P60 and employers reference
Your last three month’s personal bank statements

If you are self-employed:

Your last two year’s audited accounts, tax returns and accountants reference
Your last 3 month’s personal bank statements

Other documents will be required and will be confirmed when application forms are sent to you.

If you would like to speak with a representative to discuss your requirements please call +(34) 677 874 948

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