Woken by shaking and noise in the middle of the night, Susan Gedye headed downstairs, thinking an earthquake had struck her town in the north of New Zealand.

But as she went into the kitchen the noise got louder. Then she spotted the windows had steamed up.

Looking out into the back garden, Gedye saw a geyser had sprung up overnight and was now spewing steam and mud over the kitchen walls as it grew in size.

The family has had to move out due to the risk of the house collapsing.

The newly-formed hot pool in Gedye's garden was growing in size by the hour, she told RNZ.

By the following morning, June 26, it had turned into a "huge mud geyser" saying it was "kind of spectacular" and "a little bit scary."

"It's like a huge big crater in the front lawn and there's mud flying like about 10 meters into the air," she told the radio station.

Gedye said she had woken to shaking and jolting at about 2 in the morning, thinking "oh there's a huge earthquake happening here."

Heading into the kitchen, the sound got louder.

"Then could just really hear it and just thought something is not right here," she told the New Zealand Herald. "Looking out the kitchen window [I) saw this big geyser coming out of the bank it was like a big pile of steam."

"I panicked, it was shaking everything ... I wasn't sure what was going on."