The National
Housing Trust (NHT) has revised its second mortgage policy.
This is aimed at widening the categories of loans for which second mortgages can be awarded.
The term "second mortgage" refers to a mortgage on a property with a previous mortgage registered on it.
In instances where an NHT contributor has borrowed from another financial institution to buy or build, that institution has first claim against the property.
In the past, if the contributor applied to the NHT for his benefit, the Trust would have insisted on equal ranking with the institution having the first claim on the title.
Some private lenders had reportedly resisted the policy.
With the revision, the NHT will now accept second mortgages thereby making it easier for the contributor to borrow simultaneously from the Trust and other institutions.
However, the NHT will accept a second mortgage only where the value of the property is sufficient to secure both loans.
This is aimed at widening the categories of loans for which second mortgages can be awarded.
The term "second mortgage" refers to a mortgage on a property with a previous mortgage registered on it.
In instances where an NHT contributor has borrowed from another financial institution to buy or build, that institution has first claim against the property.
In the past, if the contributor applied to the NHT for his benefit, the Trust would have insisted on equal ranking with the institution having the first claim on the title.
Some private lenders had reportedly resisted the policy.
With the revision, the NHT will now accept second mortgages thereby making it easier for the contributor to borrow simultaneously from the Trust and other institutions.
However, the NHT will accept a second mortgage only where the value of the property is sufficient to secure both loans.
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