Second Mortgage |
| The taking out of a mortgage on a property that is already mortgaged. This can be used to raise capital if the property has significantly increased in value or the original mortgage has been largely reduced. It tends predominantly to involve finance companies more than banks or building societies. Since the first mortgagee (lender) usually holds the deeds of the property, the second mortgagee will carry a higher risk and thus charges a considerably higher rate of interest. |
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