Westpac denies risky property investors are being given one month to find alternate finance

Westpac denies risky property investors are being given one month to find alternate finance
Westpac denies risky property investors are being given one month to find alternate finance

Westpac has denied an AFR report it is giving risky property investors less than a month to find another lender.

The bank is alleged to be sending a single-page letter to investors warning it can "no longer support our commercial relationship with you."

Victor Kumar, a director of Right Property Group, a buyers' agency, reportedly has seen the letter sent to property investors.

The letter informs borrowers that Westpac is a responsible lender.

Martin North, principal of Digital Finance Analytics, has reportedly been in contact with borrowers who have received the letter.

Westpac denied the claims. 

Initially Westpac said it was attempting to locate the letter and declined to comment.

"We don't support the claims made regarding the Westpac customer communications," a spokesman later told the AFR.

"Based on the limited information we have been provided, the statements made are incorrect."

As banks are forensically examining their lending books, the Westpac letters are reportedly being sent to interest-only borrowers with multiple properties and high loan-to-value ratios, usually 80 per cent or above.

The investors, who often have up to six properties, have been told they have until October 20 – or less than a month – to find a new lender.

Tags: 
Westpac Interest Only

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