Second Mortgages

As a non bank broker I will suggest second mortgages sometimes as an option.

This is especially when your bank or non-bank lender that holds the first mortgage is unable or unwilling to help.

Second mortgages are generally used for a short period of time (usually anywhere from 6-months up to 5-years) to provide additional funding to “fix” a problem. The advantage with using a second mortgage instead of refinancing the whole mortgage is you retain the main lending at more competitive rates. Of course if I think there are benefits to refinancing you mortgage then I will discuss this with you.

Common uses for second mortgages are;

  • To pay for renovations
  • To provide the extra deposit required – for low deposit mortgages
  • To finance the building of a minor dwelling
  • Finance for a business or refinance expensive business debt
  • To pay off tax arrears
  • To pay mortgage arrears
  • Debt consolidation of some short term debt – hire purchase or credit card debt
  • Plus many more reasons…

Most banks and many mortgage brokers do not have access to the same range of second mortgage lenders that I have access to, and many do not know when it’s appropriate to use second mortgages either.