• Garry Bidwana, Marketing Manager at Eazy Cash


• 10.08.2017 12:45 pm
Mortgage

A second mortgage, also known as a personal instalment loan, can be a very easy and quick way of obtaining much-needed cash instantly. The borrower can pay it off over numerous monthly instalments, which takes a lot of pressure off their shoulders, but it is the borrower’s responsibility to keep up with the repayment schedule so that they don’t run into major trouble further down the line.

They are similar to payday loans in that they are used as a quick means of getting cash for large or time-sensitive expenses. However, lenders of second mortgages will track the repayment activity of the borrower and their report could impact upon the borrower’s credit score, whereas no such monitoring occurs with payday loans.

To receive approval for a second mortgage, you will most likely need to have a high credit score, a low debt-to-income ratio and a stable employment history so that lenders can have faith in your ability to repay the loan. Keep in mind that second mortgages are more expensive than initial mortgages and, if you fail to keep up with repayments, you are at serious risk of losing your home.

The infographic below from Eazy Cash contains plenty of important pointers about applying for a second mortgage; take a look to see if it’s right for you.