Second Mortgages

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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