Second mortgage
Second mortgage
Just wondering if there are any lenders who will still lend with a second ranking mortgage. We are looking to borrow around $60,000 to a combined LVR of 80%. We are 'full doc' borrowers with a good credit rating. Purpose of the loan is primarily debt consolidation. Refinancing is not an option as the first ranking mortgage is secured by a non-commercial loan with a very preferential interest rate.
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
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Re: Second mortgage
Very few if any lenders will accept this type of loan at a good rate as with a 2nd mortgage the new lender is taking the majority of the risk however receives very little of the interest. For that reason it is primarily private lenders that charge 2% to 6% per month that operate in the 2nd mortgage space.