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The overall speed of asset-secured lending is covered in how fast can you settle. A second mortgage has one step a caveat loan does not, and that step is outside the borrower’s and the lender’s control.
The timeline, step by step
| Step | Typical time | Who controls it |
|---|---|---|
| Enquiry to indicative terms | 1 to 2 days | Lender |
| Valuation | 2 to 7 business days, longer regionally | Valuer, and property access |
| Formal approval and documents | 2 to 4 days | Lender and its solicitor |
| Independent legal advice and signing | 1 to 3 days | Borrower and guarantors |
| First mortgagee consent and deed of priority | 3 days to 4 weeks | The bank |
| Settlement and registration | 1 to 2 days | Both solicitors |
Several of these run in parallel. The valuation, the consent request and the document preparation should all start at once.
Why the bank is the variable
The first mortgagee has no commercial reason to hurry. Its consent team works through a queue, its form of deed of priority may need negotiation over the priority amount, and a relationship manager who is unaware of the request can add days. Borrowers who call their banker before the request arrives get faster answers than those who let it land cold.
What slows everything else
- A trust deed or variation that cannot be found.
- A director overseas when documents need signing.
- A tenant who will not give the valuer access.
- A first mortgage statement that has to be posted.
- Rates or land tax arrears that show up on searches and have to be cleared.
When the deadline is sooner
If the money is needed in days, not weeks, there are two approaches. A caveat loan on its own, if the need is short. Or a caveat loan now and a second mortgage in parallel, with the second mortgage paying out the caveat when it settles. The second route costs an extra set of fees, and it is worth it only when the deadline is real and the funds are needed for longer than a caveat loan comfortably runs. See caveat loan vs second mortgage.
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Get matched with a funderFAQ
Can a second mortgage settle in under a week?
Yes, where a recent valuation exists, the signatories are available, and the first mortgagee consents quickly or consent is not being sought.
What can I do to speed it up?
Supply the rates notice, first mortgage statement, entity documents and ID at enquiry, give the valuer immediate access, and ask your banker about consent on day one.
What if I need funds before the second mortgage can settle?
A short caveat loan can provide funds in days and be repaid from the second mortgage when it settles, at the cost of two sets of fees.