Mortgagee sales hit record levels

Ombudsman Deborah Battell says New Zealanders need to be aware of what might happen if they can't service their mortgage payments and how they can help themselves.

To raise awareness around the issue the Ombudsman has released a guide to mortgagee sales which outlines how the process works, what a banking service provider is entitled to do and what steps a customer can take to avoid getting into difficulty.

"This guide couldn't be more relevant right now, given the continuing record number of mortgage finance disputes we're receiving and predictions that this situation may continue for another two years," Battell said.

She said that since the start of 2011, the Banking Ombudsman Scheme has referred 512 complaints and enquiries about mortgagee finance to the banks for initial resolution, of which 118 have so far resulted in a request for the Ombudsman to investigate.