Second Mortgages in London
What’s a second mortgage?
A second mortgage is a secured loan which uses the borrower’s home as security.
They are sometimes used to raise money if borrowers are unable or unwilling to remortgage, or to get an unsecured personal loan.
To get a second mortgage you have to already be a homeowner, but you don’t need to live in the property.
For example, if you’re a landlord you might be able to get a second mortgage secured against your rented property.
Taking out a second charge mortgage allows you to use any equity you have in your home as security against another loan, so that you basically have two mortgages.
However, if you fall into financial difficulties repaying either the first or second mortgage and your property is repossessed and sold to repay the debts, the first mortgage takes priority, with the second mortgage repaid using any remaining funds.