Second Mortgages - What Is A Second Mortgage & Is It More Expensive Than A First Mortgage?

A second mortgage is when there already is a first mortgage on a property and then the owner or the property takes out a second mortgage on their property. The first mortgage has a priority claim on the property which means that a lender who gives you the second mortgage will only get repaid (in the case of default this is) after the first mortgage lender has been repaid. This means that a second mortgage is riskier for the second mortgage provider and this is why second mortgages usually charge a higher rate of interest than a first mortgage does.