Can you have 2 secured loans on your property from the same company?
I thought this was illegal. a couple i know have a secured loan on their propertyof 5k, the same company who gave them this then gave them a second loan secured again on their property of 12k which puts them in negative equity and unable to remortgage.is this legal practice and do they have any redress against the company who put them in this position?
Answer
This is not illegal. this is standard practice. normally, an appraisal is done prior to the loan to insure the lender is not olaning more than the property is worth.
here is some additional info. hope this helps.
