We own a property in Happy Valley which was purchased about 1 year ago. It has a very standard 70% mortgage on it from StndChrt bank with the usual 3 year penalty clause. Since the purchase, the value of the property has gone up a lot and there is a lot of equity available on it.
I would like to raise some equity for other purposes so I'm faced with 2 options: Go back to the bank and ask them to change the original mortgage for a captial raise or try to find somwhere else to give me a 2nd mortgage.
Assuming credit worthyness is not an issue (we have good salaries) which option would be better/easier to do?
1) Are 2nd mortgages easy to get in Hong Kong? What kind of interest rates are available? How hard is it to execute (lawyers, paperwork etc)?
2) Would altering the 1st mortgage be easier? Are banks in general happy to revalue properties and relend (hopefully without penalties)? Are lawyers involved?
HC