Latest / Early Edition with Ryan Bridge / Jeremy Andrews: Key Mortgages broker on the number of Kiwis in arrears, upcoming OCR announcements

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Jeremy Andrews: Key Mortgages broker on the number of Kiwis in arrears, upcoming OCR announcements · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: It is five twenty one. So Kiy's is still waiting
• 0:02
  Speaker 1: to see a shift in the economy. We know that,
• 0:04
  Speaker 1: we feel it, and now we've got facts. New Centric
• 0:07
  Speaker 1: data out this morning shows reported financial hardship increased nineteen
• 0:11
  Speaker 1: percent in the past year, and most of those cases
• 0:15
  Speaker 1: were down to mortgage repayment issues. The mortgage is killing us.
• 0:19
  Speaker 1: So I've got a mortgage broker on the line right now.
• 0:21
  Speaker 1: He's from Key Mortgages. It's Jeremy Andrews.
• 0:23
  Speaker 2: Hello, Jeremy, Good morning, Andrews.
• 0:26
  Speaker 1: Are you surprised by the nineteen percent figure.
• 0:31
  Speaker 2: It's not too surprising, could have been higher. I yess,
• 0:36
  Speaker 2: A lot of I guess a lot of that's yeah,
• 0:39
  Speaker 2: A lot of that is from mortgages, people going through
• 0:43
  Speaker 2: kind of hardship.
• 0:43
  Speaker 1: So, in other words, you know that the economy is
• 0:46
  Speaker 1: a bit tanky at the moment, and so you were
• 0:47
  Speaker 1: expecting a nineteen percent. It's still not a good number, though,
• 0:50
  Speaker 1: A it's not.
• 0:52
  Speaker 2: It's been pretty hard out there, especially businesses. Last five
• 0:56
  Speaker 2: years or so, it's been a pretty hard run. It's
• 0:59
  Speaker 2: been COVID supply chain issues, is lockdowns rates after that,
• 1:04
  Speaker 2: rates have gone from kind of record loads to the
• 1:07
  Speaker 2: highest a lot of those new businesses would have seen.
• 1:11
  Speaker 1: And all those people are wanting it to improve soon.
• 1:15
  Speaker 1: And can you see improvement in the next coming months
• 1:18
  Speaker 1: or is this going to be a medium term thing?
• 1:22
  Speaker 2: So from the interest rate perspective, yeah, that's that is
• 1:25
  Speaker 2: slowly getting better, but it's not It's not going to
• 1:29
  Speaker 2: be a magic turnaround. I think that the hardship levels
• 1:33
  Speaker 2: there is still going to continue on for But there's
• 1:37
  Speaker 2: a lot of hits out there still just rates really high.
• 1:42
  Speaker 2: It was still still reduced, I guess as people buyers
• 1:46
  Speaker 2: and consumers are still struggling to afford things and spend
• 1:50
  Speaker 2: as much as they used to do.
• 1:52
  Speaker 1: Well, here's the thing though, here's the thing though. The
• 1:54
  Speaker 1: OCN is coming up, and yesterday all the news was
• 1:57
  Speaker 1: about Trump's tariffs and suggesting that maybe too dramatic drop
• 2:02
  Speaker 1: in the in the interest rate might not be in
• 2:04
  Speaker 1: our in our favor, and therefore the interest rates could
• 2:07
  Speaker 1: stay high for a while. So there are a lot
• 2:09
  Speaker 1: of people out there right now with mortgages thinking to themselves,
• 2:11
  Speaker 1: what on earth do I do? What would you what
• 2:13
  Speaker 1: would you suggest?
• 2:16
  Speaker 2: Uh? Yes, So we've seen quite a bit of changes
• 2:19
  Speaker 2: in the last six months the osier's gone. It's gone
• 2:24
  Speaker 2: from kind of not planned to reduce them to quite
• 2:27
  Speaker 2: quickly reducing. But the fixed rates maybe haven't come down
• 2:32
  Speaker 2: quite as much as people were hoping or as quickly.
• 2:36
  Speaker 2: It's just in the last week there's been quite a
• 2:39
  Speaker 2: bit more dramatic shifts. So we're now getting interest rates
• 2:42
  Speaker 2: kind of down around the kind of early to mid
• 2:45
  Speaker 2: fives or that kind of short, short term. I'll probably
• 2:48
  Speaker 2: suggest that most people, yeah, heedge your bets, don't necessarily
• 2:54
  Speaker 2: just hope that rates just can continue to free fall
• 2:57
  Speaker 2: and keep dropping, maybe fixing some of your loans or midterm.
• 3:04
  Speaker 2: A lot of people, a lot of people were actually
• 3:06
  Speaker 2: holding off and floating over the last six months. I
• 3:10
  Speaker 2: don't think I've ever seen so many people on floating
• 3:13
  Speaker 2: just hoping for rates to really drop.
• 3:17
  Speaker 1: Well, I'll take that. I'll take that as a vote
• 3:19
  Speaker 1: of confidence by the New Zealand people to go into
• 3:21
  Speaker 1: floating because they believe that things are going to get better,
• 3:24
  Speaker 1: because just a month or so ago, the one year
• 3:27
  Speaker 1: fixed rate was the go for everybody. Now, thank you
• 3:29
  Speaker 1: so much. Jeremy Andrews. Jeremy is a mortgage broker from
• 3:32
  Speaker 1: Key Mortgages.
• 3:34
  Speaker 2: For more fam earlier edition with Ryan Bridge. Listen live
• 3:37
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• 3:40
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