A second mortgage may be required if it is not possible or practical to borrow all the funds someone requires from the bank. This could be due to a number of situations.
- I recently had self-employed people who couldn’t borrow more from their bank due to not having up to date financial information. They needed funds to renovate a property that they were planning to sell. The second mortgage allowed them to do up the property and get a much better price for it at sale.
As second mortgages don’t offer the same level of security to a lender, they do attract a higher rate of interest than a first mortgage and there can be upfront fees as well. However they are appropriate in some short term situations as they can be easier to obtain than normal finance.
Contact me today to see if this type of loan may be suitable for you.