New mortgage fund to the rescue of high LVR borrowers

Oake Securities, a newly established specialist fund, aims to raise A$250 million over seven years to invest in second mortgages.

The fund's target market will be borrowers "with excellent credit credentials but who are struggling with a deposit."

At present Oake is still scouting for equity to get the business up and running, with $1.5 million in shares for sale for a one-quarter share of the equity.

Deborah Upton is the founder of Oake. She has worked in property funds management across her career and at one stage served as executive officer of the Australian Direct Property Investment Association.

The other directors are Alan Hayden and Mark Wist.