The Public Trust has pulled out of the mortgage market.
A spokesperson has confirmed that effective immediately, it will not longer supply new mortgages, although it will continue to service those mortgages it already has on its books.
The reasons given were that it can no longer offer a competitive product in a very competitive market, and that mortgages are not 'core' to its business.
It is understood that it has a mortgage book of slightly less than $200 million, and probably involves about 3,000 clients.
The spokesperson declined to be drawn on whether it would hold or sell this mortgage book.
Existing borrowers will have their interest rates reviewed and adjusted in line with market changes, the spokesperson confirmed.
The following announcement was received from them:
Public Trust can confirm new home loans are no longer being offered to customers.
A number of factors were considered in reaching this decision. While we have loyal and satisfied customers, for many New Zealanders we aren’t considered an option as our core focus is helping New Zealanders with comprehensive estate planning and trustee management services. Right now it’s also a highly competitive interest rate environment with additional incentives being offered by the major banks.
Public Trust will continue to provide service to existing home loan customers with top ups and renewals. Any current applications underway from new home loan customers will be processed in the usual way. No new home loans will be accepted from customers after 17 December 2012.
The Public Trust has now been removed from our mortgage table.
All current mortgage rates can be found here »
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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
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