A further advance and a second mortgage
A bank further advance increases the existing first mortgage. A second mortgage is a later charge by someone else. A bank refusal is not an approval.
A further advance usually stays with the same bank
A further advance is a request to the current mortgage bank to lend more. If the bank agrees, the extra usually remains part of the same first-mortgage arrangement, not a new second mortgage. Whether it agrees, and on what amount, rate, and term, is the bank’s decision.
China Prestige Capital cannot process that advance, and cannot see or change the limit between you and the bank. The bank’s staff, app, and hotline are the channel. Refuse anyone who offers to arrange the bank advance for a fee paid first.
A second mortgage is another lender, further back
The second-mortgage lender is not your first-mortgage bank, and ranks behind it. Two loans can use one flat and still be two arrangements. Keep paying the bank as the bank document says. Pay the new loan as its own writing says. Do not send both to one personal account unless the writing names that account.
Because the new charge is behind, the valuation has to deduct what the bank is still owed. The bank’s valuation and a money lender’s review can differ. A bank figure is not a second-mortgage approval. A bank refusal is not one either.
After a bank refusal, the review starts again
A bank may refuse because of income, a stress test, age, property type, or its own policy. The money lender’s questions are still whether any margin remains after the first charge, and whether you can pay another instalment. Neither answer is copied from the bank’s letter.
Bring the address, the bank’s name, the approximate principal, the remaining term, and whether recent payments were late. Recent arrears matter. Hiding them does not help.
Both kinds of cash are debt
Whether the money comes from a bank further advance or a second mortgage, cash in hand is borrowing. The purpose may be liquidity, repaying other debt, or another lawful need. It still has to be repaid. Do not spend a figure that has not been confirmed in writing.
The 48% APR ceiling applies to a money lender’s loan. It is not a quote for a bank mortgage rate, and it is not the rate we have offered you. Your rate is confirmed in writing after assessment.
Decide which contract you want to keep
Keeping the bank mortgage as it is, and asking about an extra loan, points to a second mortgage. Asking the same bank for a higher limit points to a further advance. Moving the whole mortgage points to a remortgage. The documents and penalties differ. If you are unsure, call 3622 2934 before you choose a form. The call is not an approval.
Once security is involved, take the papers to your own solicitor. These articles can separate the words. They cannot replace legal advice.
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Before you read
Warning: you have to repay your loans. Don’t pay any intermediaries.
China Prestige Capital is a licensed Hong Kong money lender, licence 1848/2025. Enquiry and complaint hotline: 3622 2934. We are not a bank and not an SFC-licensed corporation. We do not take deposits or provide securities or asset-management services.
Under the Money Lenders Ordinance, the APR must not exceed 48%. The HK$20,000 example on this site is illustrative only: monthly flat rate 0.052%, APR 1.15%, 12 months, no handling fee, monthly interest HK$10.4, total repayment HK$20,124.8. Your rate, amount, and term are assessed individually and confirmed in writing.
Sending an enquiry, or reading an article, is not an approval. A second mortgage or owner loan is secured on property. Default may lead to enforcement and sale. Obtain your own legal advice before signing any security document.