In message , snipped-for-privacy@mailinator.com writes
When taking security lenders do so for more reasons than just making sure that the value of the house less the amount outstanding to the prior mortgagee. One major reason for taking a second charge over the domestic property is to put more pressure on the debtor to fulfil their liabilities. Debtors tend to ensure that any payments on loans for which their house is used as security take precedence over other debts. Sometimes a second mortgagee will take that position even with hardly any equity available and in these circumstances the security is said to be taken on a 'for what worth' basis.
So, this means that the amount of equity that was available to the second mortgagee isnt as important as you may think, they have still got you by the short & curlies in any event.