Reasons To Consider

Has your home loan application been turned down because of a poor credit history? Are you struggling to make mortgage repayments, juggling multiple debt repayments, or facing the threat of debt collection or repossession of your home?

If you answered yes to any of these questions, Max Mortgages may have a solution for you.

Simplify your finances by consolidating your debt

Trying to keep track of multiple debt repayments at different times of the month can be challenging. And it can mean missing repayments if you’re not careful. Simplify your repayments by rolling all of your debt into one manageable loan with one repayment amount each month. Save on interest charges and pay back your debt much faster too.

If you have equity in your home, you may be able to borrow against the value of your home to pay off your high-interest debt. By refinancing your mortgage with a bad credit home loan and using the equity in your home to clear all of your debt, you’ll pay a much lower interest rate and get in control of your finances.

Case Study: Consolidating debt helped simplify their finances

Jo and her husband Steve own a small business together. Recently, Jo was hospitalised and had to apply for a personal loan to cover her medical costs. Along with their mortgage and personal loan, Jo and Steve also had two credit cards. Each repayment had to be made at a different time of the month, with varying interest rates, terms, fees and charges.  What’s more, with business not doing too well at present, Jo and Steve can only afford the minimum balance on their credit cards. As a result, Jo and Steve felt like their debt is becoming unmanageable, with hundreds of dollars of interest piling up each month and no real way to pay it down.

Jo and Steve visited our website and saw they had a few financing options available, from applying for a separate debt consolidation loan to refinancing their home loan. They called us for a chat, and after a quick review of their finances, what we decided was best for them was to re-mortgage. By refinancing Jo and Steve’s mortgage with a bad credit home loan, they were able to pay back all of the debt from their personal loan and two credit cards.

Not only have Jo and Steve simplified their finances with one repayment amount each month so they’re not in danger of missing repayments any more, they’ve also refinanced at a much lower interest rate so they’re saving hundreds of dollars each month too.

Take back control in a repossession situation

When you’re unable to pay back money you’ve borrowed, lenders may repossess something you own to cover your overdue debt. Any item you’ve listed as security for your loan in your credit agreement can be repossessed. Like your car or a TV, or even your home.

Repossession is incredibly stressful, especially if your family home is involved. No one wants to lose their home!

If you’re at any stage of the repossession process, there are steps you can take. Refinancing with a bad credit home loan could help you take back control, by providing the finance you need to get out of a repossession situation and claim back the items that  are otherwise to be repossessed.

Case Study: Turning a repossession around

James switched his job because he was tired of all the long hours and weekend work. His new position involved a salary cut of roughly 15%, but enabled him to spend more time with his family and friends. As his income was reduced, he tried his best to cut expenses, however, his income still wasn’t enough to cover everything. James was starting to fall behind on his mortgage repayments and then received a letter of demand. He realised that if he couldn’t pay the amount demanded in the notice, his bank might repossess his property and sell it to recover all money secured by the mortgage.

James was worried when he called Max Mortgages. However, after he chatted with one of our Mortgage Advisers, he became more confident. We listened carefully to him and talked about how we might be able to help. Together, we decided to refinance his existing home loan into a new one with a repayment plan that fits what he could now afford. From there we helped James with all the paperwork and guided him along the path to a successful refinancing, saving him time and leaving him better-off.

At Max Mortgages, we understand that things can change, and that can affect your financial situation. If your home faces the risk of being repossessed, contact us and together we can determine a solution to help you keep your property and get your finance back on track.

Get debt collectors off your back

Missing repayments on loans could mean lenders take extra steps to recover your outstanding debt by involving a debt collection agency. Dealing with debt collectors can be intimidating, so if you’ve been notified of this process, get in touch with our team to find out how we can help.

A bad credit home loan from Max Mortgages, with more flexible terms and conditions, could help ease your repayment pressure and help you get on top of your outstanding debt by making the repayments easier on your budget over a longer term. That way you’ll get the debt collectors off your back!

Case Study: A workable financial arrangement

When Judy had a call from a debt collection agency – following up on outstanding credit card bills – she knew she needed help. After being injured in an accident and being off work for six months, Judy has been struggling to clear her credit card balance. Missed repayments and snowballing interest charges on top of a lower income, have left Judy stressed out and unsure how to move forward and pay back her debt. What’s more, the debt collection agency told Judy that they would report the debt to the credit bureau if payment was not arranged.

After contacting Max Mortgages, Judy was able to refinance her mortgage with a bad credit home loan and pay off her outstanding credit card debt. The interest rate on her bad credit home loan is much lower than that of her credit card, which means her monthly repayments are easier to manage. Now Judy feels more in control of her finances and is on track financially once again.

Manage mortgage defaults

Getting behind on your home loan repayments has significant consequences. Not only can it negatively impact your credit score with a mortgage default listed on your credit report, your lender may even repossess your home and sell it at a mortgagee sale to recover your debt.

If you’re in danger of defaulting on your mortgage, take action right away. Refinancing with a bad credit home loan with terms and conditions to help you manage your repayments could mean you avoid a mortgage default and potentially losing your home.

Case Study: Refinancing to save their family home

Sarah was on unpaid maternity leave when her husband, Andy, injured his back and couldn’t work for two months, leaving his family with no reliable income. With additional medical costs, a mortgage and a car loan, Sarah and Andy had little leftover in their family budget for every day expenses, and resorted to using their credit card instead.

With their debt snowballing each month and living expenses stacking up, the couple were in danger of defaulting on their mortgage repayments and potentially losing their family home. Because of a bad credit score from a default in the past, Sarah and Andy knew their financial options would be limited.
They worked with Max Mortgages and were approved for refinance with a bad credit home loan. What’s more, because the value of their home had increased, Max Mortgages helped them refinance to a higher amount so they could clear all of their outstanding debt.
Now the couple are both back at work and working hard to pay back their mortgage so they can refinance to a more favourable interest rate doing well at managing their ongoing financial obligations.

Overcoming bad credit

Applying for finance can be challenging, especially if you’ve missed a repayment in the past and your credit score has taken a dive. But a low credit score shouldn’t mean the end of your home ownership dreams.

Max Mortgages is already helping New Zealanders – just like you – with bad credit home loans to help get them with back on track financially. At Max Mortgages, we’re experienced at handling all kinds of lending and have access to a number of lenders who specialise in working with bad credit home loans.

If you have questions about consolidating debt, debt collection, repossession or mortgage defaults, you can request a call from one of our Mortgage Advisers. Don’t let past bad credit deter you from reaching your financial goals. Contact Max Mortgages today to get started.