Second charge
Security registered behind a first charge over the same asset, meaning the second-charge lender is normally paid after the first-charge lender from sale proceeds.
Related terms
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Second-charge loan
A loan secured by a second-ranking charge over property that already has a first mortgage or charge.
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First charge
The security interest with first priority over an asset, usually meaning it is paid before lower-ranking charges if the asset is sold.
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Mortgage shortfall
The amount still owed to a mortgage lender after a property has been sold and the sale proceeds are not enough to clear the secured debt and related costs.
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