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Second Mortgages

The second mortgage sector of the market is very responsive to changing times and it is not bound by strict policies and criteria.

Second mortgages are once again becoming a useful option to get things done. 

In response to the Global Financial Crisis, the need 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

  • Equity.  Most often, it is the level of equity available in the property offered as security that will determine the success or failure of second mortgage funding. 
  • Property type.  The type of property and the borrower's ability to service the second mortgage are important.
  • 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 an ability 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 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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