Glenn Phillips helped himself to his first Test century before lunch on Thursday as England's ragged bowling allowed New Zealand to add 100 vital runs to their overnight 7-291.
In reply, Ben Duckett was run out after a rapid 36 and fellow opener Emilio Gay made a half-century but New Zealand pace bowler Matt Henry trapped England danger men Joe Root and Harry Brook lbw to leave the hosts reeling.
Debutants James Rew and Jordan Cox steadied the ship but Rew became Will O'Rourke's second victim just before the close to make it emphatically New Zealand's day.
England will return on Friday still 169 runs behind with just the tailenders to come.
New Zealand, trailing 1-0 in the three-match series after a chaotic defeat at Lord's, began the day still some way off posting a healthy first-innings total on a good pitch.
They were helped, though, by some mystifying bowling as England's barrage of bouncers backfired.
Phillips, 49 not out overnight, needed no second invitation to tuck in as England completely lost control.
He shared an 87-run partnership with Kyle Jamieson who made 41 having been reprieved on 15 when Duckett dropped a simple catch on the boundary.
Jamieson was bowled by part-time spinner Jacob Bethell who ended with 3-26 but Jofra Archer was surprisingly held back in the morning despite England's toil.
When he finally appeared, he removed Matt Henry before Phillips was last man out, caught at deep mid-wicket after a heave at Matthew Fisher.
Duckett looked dangerous and accelerated to 36 from 25 balls but was run out as Gay called for a single that was never on and Nathan Smith swooped to throw down the stumps.
New Zealand's disciplined pace quartet plugged away, with Smith having Bethell caught behind by Tom Blundell.
Gay ground out his second half-century, following his debut knock at Lord's, from 112 balls, the slowest 50 by an England player in the Bazball era.
He was out for 53 as he turned his head away from a rising delivery by O'Rourke but failed to get his bat out of the way. He was given out, caught behind, after a review.
Root, leading the Test side for a record-extending 65th time after captain Ben Stokes was left out following an investigation into a nightclub incident, looked typically serene but fell four short of his half-century as Henry jagged one back.
Brook carved one remarkable six off O'Rourke but was trapped in his crease as Henry again found movement. Rew made 24 before attempting to hook O'Rourke for six but only gloving a looping catch to Daryl Mitchell.
10°C