First Mortgage
Because it is possible to take out more than one mortgage on a property, the first one you take is known as the first mortgage. Later on, you may want to remortgage your property and in this event you will have both a first and second mortgage. Should you fail to keep up payments, meaning that your house will have to be sold to pay off your debts, the lender of your first mortgage would be first in line to receive any proceeds, and the lender of your second mortgage would have the right to take anything left after that.
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