Second mortgages

Second mortgage loans are making a come-back

With the main banks having reduced their Loan to Value Ratios the market for second mortgage lenders has returned and we are seeing a growing number of specialist lenders operating in this area of the market.  The market for second mortgages is dynamic, it changes quickly and is best to be assessed case-by-case, subject to some general guidelines.  

Second mortgage guidelines

1. Equity.  Most often, it is the level of equity available in the property offered as security that will determine the success or failure of suitable second mortgage funding. 
2. Property type.  The type of property and the borrower's ability to service the second mortgage can be significant.
3. Repayment.  The expected loan term and the method of repayment is important.  Typically, we would expect second mortgage loans to be able to demonstrate a clear repayment strategy (which may be via the sale of the property) or demonstrate a capabilty to repay the second mortgage over a relatively short term (say 5-7 years). 

Assessing your options

A second mortgage may be the best option for you.  However, there could be better or more cost effective ways to arrange additional finance without requiring a second mortgage.  Perhaps a loan secured by a caveat will be sufficient for your needs. 

We can make a full assessment of your options when we know a little more about your situation and what you want to achieve. 

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