It is also a good way of getting cash to pay for a child's university or college tuition fees. The loan should help a lot towards tuition and boarding fees or possibly to buy a car for the student.
This loan can actually be taken the same time as the first one is borrowed. If a home buyer did not have the required deposit when he or she was purchasing their home
They could make use of the second mortgage to pay for the down payment.
The second mortgage is the second loan secured against your home. This loan can be taken by home owners if they require an amount of cash for any project. The banks do not exercise control over the expenditure of the loan.
A second mortgage can be taken out the same time as the first loan. It sometimes happens that a home buyer does not have the required down payment when they are purchasing their home. It does happen that some banks are not prepared to give a loan for the full purchase price of the home then the balance has to be paid in the form of a down payment by the buyer.
The interest rate of a second mortgage is higher than for the first one as the risk of loss has become larger for the lender. Both these loans are secured by the home.
These loans are obtainable from all banks and many money lenders. The usual qualifications apply for the applicants. They need to have a good credit record and must be able to prove that they are financially capable of paying off both loans.