Hi,
This is long so I apologise but I could really use some feedback.
We have lending across Westpac and ANZ and are scheduled to settle a purchase of 2 properties with Westpac on the 25th November. They were to be secured with a partial release of security from ANZ. The problem is that, while ANZ has been saying that there will be no problem with this (nothing on paper) for weeks they have now decided not to approve it.
The reason for this is that they have decided that we have too much lending in a particular area and said that anything further in this area needs to be at 70 % lending instead of 80 % which we have had so far. They told us this a while ago but we haven’t bought anything further. On trying to release the security which we were told they didn’t need they did a recalculate at 70 % of our entire lending and said that we couldn’t have it!
The sad thing is we have enough cash to provide[confused2] the security for Westpac but it is now too late to redraw the documents that way. The seller has said no extensions.
Do we have any legal recourse with ANZ? They have seriously misled us – we were told there would be no problem many times and told that the recalculate of existing borrowing would not happen. And how can we convince them to change their minds? And fast?
Really appreciate any help.
cheers
Karen
Hi Karen,
To clarify, your portfolio was initially X-colled, currently you now have adequate equity in the portfolio (80% LVR) to allow the release of one of these properties from the clutches of the ANZ,
Did you intend to include the unencumbered property as security over the next purchase with Westpac? Or, did you intend to access the available equity via the ANZ on the unencumbered property to fund part of the next purchase with Westpac?Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Steven,
Thanks for the reply. As you can imagine – sweating it out this week. Yep at 80 % they said -only verbal through the bank manager that we could have the equity released as it wasn’t needed as security.
It has been written into the loan as security for Westpac – not a cash draw. I could give Westpac the cash seurity but there is no time to redo the loan.
Can ANZ change my lending across my existing portfolio from 80 to 70 without notice? And do I have any come-back given that the Finance Manager said that this would not happen?
Thanks again,
Karen
Hi Karen,
Have you spoken to someone further up the ANZ ladder, someone that may listen to reason.
failing this, you could threaten to take your business elsewhere and refinance the whole lot to another lender, this approach may cause a positive reaction, If you need any help don’t hesitate to call me, Good luck.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Steven,
Do you happen to know how to find my way up the ANZ ladder to someone who may listen to reason?[biggrin] Other than my finance manager who sends through requests I am a at a bit of a loss to find my way to anyone who is authorised to make a decision.
Yeah – we have mentioned refinancing before to Westpac and it just doesn’t seem that the big banks care anymore. I’ll certainly have a go but I may have to actually do it when the dust settles.
thanks
Karen
Hi Karen,
If you want to e-mail or call me with the details, I would be happy to make a few calls to the ANZ on your behalf.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
http://www.abio.org.au/ABIOWeb/abiowebsite.nsf
I suggest you get the ombudsman involved. Just having the take a interest can sometimes move mountains.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Have a talk to the ANZ complaints section first:
http://www.anz.com.au/australia/aboutanz/customercharter/resolvecomplaint.aspI have had LOTS of dealings with them, sometimes they are able to help, other times they can’t……..
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi guys,
Thanks very much for the replies. I have been in contact with the Ombudsman who thinks they can help and initially referred us to the customer reponse unit who will start action on our behalf.
Hopefully that lot will get me going.
Last question – have you ever heard of that happening – having your LVR reduced across your existing portfolio without notice?
Thanks again,
Karen
Karen
yes. it does happen, and can even be worse.
I actually don’t think you have much to go on, as the bank did give you formal approval before they changed their minds. And they had previously informed you that they would only lend to 70% in that area.
But, complaining may still get you somewhere so good luck.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry is right… it CAN get even worse… the Australian Broker magazine had an article on the front page to the effect that NAB has called in 3 loans – despite the loans not being in default! The NAB also refused to provide any reason to the borrowers.
Very ugly…
Max Hugen
Alpha Financial
Residential & Commercial Loans
http://www.alphafinancial.com.au
02 9560 3061Max, that bank is well known for this sort of thing. It happened to another client of ours with a farm. They just said you have ‘x days to repay your loan in full’, with no reason given. I htink he had a month or so!
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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