Document background
A Second Mortgage Agreement is utilized when a property owner seeks additional financing while maintaining an existing mortgage. This document, governed by English and Welsh law, creates a secondary charge over the property, subordinate to the first mortgage. It typically includes terms for repayment, security enforcement, borrower's obligations, and the relationship with the first mortgage. The agreement must comply with Financial Conduct Authority regulations and relevant property legislation, particularly regarding consumer protection if the property is residential. It's commonly used for business expansion, home improvements, or debt consolidation purposes.
