Remortgage and second mortgage: the difference
A Hong Kong remortgage usually replaces the first mortgage. A second mortgage ranks behind the mortgage that stays. China Prestige Capital is not a bank.
A remortgage replaces the first mortgage
A remortgage usually moves the existing bank mortgage to another bank, or rearranges the first mortgage with the same bank. The steps often include a valuation, a new mortgage, and using that loan to repay the old one. If cash remains after the old balance, people call it a remortgage cash-out. The first-mortgage arrangement is replaced. A new creditor is not simply added behind the old one.
Banks decide bank mortgages on their own criteria. China Prestige Capital is not a bank, does not offer a bank remortgage, and cannot approve one for a bank. If your aim is a bank, ask the bank. This page only separates the words, so a second-mortgage enquiry is not mistaken for a bank’s yes.
A second mortgage leaves the bank loan in front
On a second-mortgage enquiry the bank mortgage usually stays. If a licensed money lender later offers a secured loan in writing, the new charge ranks after the first. On a sale or enforcement, the first mortgagee is normally paid first. The bank mortgage has not been “moved away”.
If you want to ask a money lender rather than a bank, choose a second mortgage or owner loan and give the address, the approximate first-mortgage balance, and whether payments are up to date. Those facts test the margin. They are not a published ratio.
Why people ask about both
After a bank remortgage is declined, a valuation falls short, or the owner does not want to disturb penalties and the remaining term, some people look at a second mortgage. Looking is not an approval. The lender still needs room after the first mortgage, and the ability to pay both instalments.
The two payments stack. Comparing only the new one with salary understates the pressure. Include the bank payment, cards, and other loans. Too heavy a burden can be declined.
Penalties and cash incentives belong to their own contracts
The bank mortgage may charge a fee if you refinance or repay early. That fee is between you and the bank. Asking a money lender does not cancel it. Do not assume a second mortgage, or any new loan, will pay or erase that fee until you have read the bank document.
If the discussion includes redeeming the bank, the bank’s writing governs that loan. Any writing from this firm, if it exists, governs only the loan with this firm.
The wrong name hides the risk
Calling a second mortgage a remortgage can make you think the old loan will be cleared and only one payment will remain. Often the old mortgage stays and another charge is added. Before you sign, ask a solicitor to explain the bank documents and any new security separately.
If you do not accept the flat staying charged, do not start a second-mortgage enquiry because of a remortgage advertisement. Read about a personal loan, or do not borrow. Hotline 3622 2934.
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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.