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Second mortgages are sometines required by borrowers when they require additional funds that their existing lender is unwilling to provide. Alternatively there are times when the existing mortgage is secured at a competative rate and the borrwer needs additional funds for business purposes and a second mortgage is a cheaper option than refinancing the entire facility.
In recent times the Global Financial Crisis has put a squeeze on loan to value ratios (LVR) particularly for commercial properties and specialised securities such as service stations. The borrowers may have sufficient income to service the existing debt however the lenders have typically been asking them to put in additional equity to lower the LVR. In cases where there is no additional equity available the borrower either has to sell the property, which is not ideal in a depressed market, or raise additional funds via a second mortgage on the property to lower the senior lenders LVR until the markets stabilize.
Second mortgages can be structured to assist investors to acquire properties for either investment purposes or where "value-add” opportunities are available.
GCC can offer second mortgages up to 80% LVR with very competitive pricing.
If you would like to speak to one of our consultants for further information contact Global Capital Commercial on 02 9222 9100 or if you would prefer one of our consultants to contact you please complete and return our one page enquiry form.
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