Second Mortgage
A loan secured against the equity in a property that already has a first mortgage — subordinated in priority and typically carrying higher rates.
A second mortgage is a loan secured by a registered charge against a property that already has a first (primary) mortgage. The second mortgage is 'subordinated' — in a default, the first mortgage is repaid from sale proceeds before the second mortgage sees any recovery. This higher risk translates to meaningfully higher rates (typically 7–15% in 2026, depending on borrower strength). Second mortgages are common for debt consolidation, home renovations, or bridging short-term needs, but they layer rate and default risk on top of the first mortgage. Private lenders and alternative lenders dominate the second-mortgage market.
Related Terms
The primary loan secured against a property — first in priority for repayment in the event of default, and the mortgage most borrowers refer to simply as 'the mortgage'.
A non-bank, non-regulated mortgage lender — typically an individual, mortgage investment corporation (MIC), or syndicate — used for borrowers who can't qualify with traditional lenders.