A second (2nd) mortgage is a Mortgage taken out on a property which is already mortgaged. In other words, it is a type of sub-ordinate mortgage made while the original mortgage is still in effect. In case the borrower defaults on the Mortgage, the original mortgage gets paid off prior to the 2nd mortgage. The rate of interest charged for the 2nd mortgage is therefore higher & the amount borrowed can be lower or higher than the first mortgage depending upon the funds you need.
When considering an application for a 2nd mortgage, the main factors we look for are:
- The client owns a home &
- The home has equity.
We DO NOT consider:
- Credit Rating
- Employment history
- Income ratio
Manny Johar specializes in 2nd and 3rd mortgages and most of these mortgages are completed under EXPRESS MORTAGE SERVICE which takes only 24-48 hours to fund.
Why Use A 2nd Mortgage?
There are scores of reasons why a 2nd mortgage may prove useful for you. It is appropriate particularly for the times, when you require a huge amount of money, but do not have enough savings or credit on the credit cards. If your credit score has dropped since you took your first mortgage, the option of remortgaging could burden you with more interest on your entire mortgage, instead of just on the extra amount that you wish to borrow. In such a situation, taking out a second mortgage is therefore a wise decision.