LVR RULES CHALLENGED

Olly Newland March 2013″  
“Alternative finance sources are beginning to appear in response to the Reserve Bank’s LVR restrictions  which only apply to trading banks”.


LendMe says high loan-to-value restrictions do not apply as it is not a registered bank.
LendMe founder Mark Kirkland said the high loan-to-value (LVR) restrictions introduced in October 2013 did not apply to LendMe as it was not a registered bank. Photo / Natalie Slade
LendMe founder Mark Kirkland said the high loan-to-value (LVR) restrictions introduced in October 2013 did not apply to LendMe as it was not a registered bank. Photo / Natalie Slade
A newly licensed online lending service is targeting prospective homeowners who have been shut out of the mainstream mortgage market by low-equity loan restrictions introduced by the Reserve Bank.

LendMe announced yesterday that it had become the second peer-to-peer lender to receive a licence from the Financial Markets Authority.

Peer-to-peer lending involves borrowers and lenders being matched through an online platform.

LendMe will offer secured loans, meaning its lending will be secured by mortgage over borrowers’ existing assets.

The firm said it would specialise in secured loans from $25,000 to $2 million for a range of purposes including home purchases, residential investments, commercial property, business growth and rural finance.

link:  NZ Herald 12.5.15

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11446958

 

Get in quick: Register with Lendme at: http://www.lendme.co.nz/

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