Second Mortgage

This is also known as a secured loan - it's an additional mortgage taken out on a property where there is already a mortgage.

You may wish to take out a secured loan from a bank or a building society in order to carry out home improvements or you may be taking advantage of the equity in your property to raise funds to set up in business.

The rate of interest on your second mortgage is likely to be higher than that of your first mortgage to reflect the fact you're borrowing more heavily and so deemed to be a higher risk to the lender.

Although both of them are secured on your property, the legal charge of a second mortgage ranks behind or second to the “first” mortgage, making it a higher risk for the lender.

Get professional help from a qualified independent mortgage advisor and see how much you could save on your mortgage payments. There's no obligation, just plain good advice.

See also: Financial Services, Mortgages