27 Aug 2022

Do Banks Offer 2nd Mortgages Anymore?

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Second mortgages are still available from some banks, although they have become much harder to obtain than they were a few years ago. Moreover, the stricter lending criteria that banks have adopted in the wake of the financial crisis means that borrowers must now have a very good credit rating and a large amount of equity in their property to qualify.

 As a result, second mortgages are now mostly only an option for those who have significant equity in their home and who are looking to borrow a relatively small amount of money. If you do not fit into this category, then your chances of being approved for a second mortgage from a bank are very slim.

In recent years, the number of banks offering 2nd mortgages has decreased. There are several reasons for this: 

1) The housing market crash of 2008. This event made banks much more risk-averse when lending money for mortgages.

2) The rise of alternative lenders. Many companies offer 2nd mortgages, so banks don’t have as much of a monopoly on this type of lending.

3) Changes in banking regulations. Banks are now subject to stricter regulations, which make it more difficult and costly for them to offer 2nd mortgages.

Despite the decrease in the number of banks offering 2nd mortgages, many lenders still provide this type of financing. So if you’re looking for a 2nd mortgage, you should have no trouble finding a lender.


If you are interested in applying for a second mortgage, we recommend contacting a private lender for assistance – Mortgage House can even help. Remember that you will need permission from the original lender to obtain a second mortgage. However, a private lender may feel more comfortable approving a second mortgage, but the original lender will still need to give their approval before a private lender can take over.

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