Rough deal for mortgage-holders
Wednesday 11 February 2004
New administrators of Landcorp mortgages charging high interest rates on late payments
By The LandlordPeople with mortgages taken out through an old government department are getting stung by the new administrators.
Agricultural enterprise Landcorp, has sold 418 mortgages for residential, commercial and rural properties to Mortgage Holding Limited, which is run by a group of Auckland lawyers.
However, some of the mortgage-holders, who are mostly superannuitants, have struck problems with late payments. Most of the affected people bought property from Landcorp some years ago on a lease-to-own basis.
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It looks like the sleeping giant of New Zealand’s housing market could be stirring, with new REINZ data showing that both sales and prices in Auckland are up.
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.