What if I already have a mortgage?

It is possible to have more than one mortgage on your home. Many banks, building societies and lending companies will lend if there is sufficient “ free equity” in the property. This is the difference between what the property is worth and what you owe on any existing mortgages.

Some people think that if they pay their first mortgage they can miss payments on any second or subsequent mortgage. THIS IS WRONG. The second mortgage company has similar rights to the first mortgage company. The second mortgage company can claim the mortgaged property if the terms of its agreement are not kept.

It is also worth remembering that if you own or are buying your home and you borrow money with an unsecured loan, without providing a mortgage as security, the lender may still be able, in the event of default, to seek recovery of the money through the courts via a Charging Order on your home.