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09-09-2008

Mortgage site links borrowers to lenders

OtgaoDailyTimes

Two Otago investors are helping bankroll a new Internet site they say will challenge mortgage brokers.

Eion Edgar and John Gilks have invested in Fundit.co.nz in which borrowers determine how much they want to borrow, their security and the term of the loan, and then lenders bid for the business.

Company director Eion Edgar said so far seven lenders, including two of the main trading banks and other building societies, have joined Fundit.co.nz, but he said others were waiting to see how the new business performed.

"I suspect they will come on board," he said.

The site was the idea of Peter McDermott, of Wellington, a former senior executive at NAB.

Mr Edgar said the system reversed the traditional way of getting a mortgage, by the borrower putting his business up for lenders to bid on.

The business had grown well now the final format and technical issues had been finalised.

The launch coincided with a key period with $45 billion in mortgages up for refinancing this spring.

Mr Edgar said the technology was developed by Fundit.co.nz and there were plans to take sell the concept overseas, with Australia one of the first markets.

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