Second Mortgage
A second mortgage refers to the part of the borrowed capital that exceeds a loan-to-value ratio of two-thirds of the property value in the case of bank financing. This second mortgage must be amortized at the latest by the time the borrower reaches retirement age and/or within 15 years of taking out the loan. In legal terms, this is a mortgage on real property. For this reason, the second mortgage can also be financed as a mortgage-backed loan via the Crowd4Cash platform.
This approach offers several advantages: Due to the real estate pledge, the interest rate is usually lower compared to an unsecured personal loan. In addition, the bank's affordability calculation is positively influenced. On the one hand, the customer has to provide less of his own funds, and on the other hand, he can expect a positive decision even with a lower income. This happens at a constant risk for the bank.
The possibility of financing second mortgages via Crowd4Cash thus offers an attractive option for real estate owners who want to benefit from the advantages of a loan secured by a real estate lien. Crowd4Cash ensures that this process is transparent and smooth to ensure responsible lending.