Thursday December 17 2020

What is cross collateralisation?

Cross collateralisation, or ‘cross securitisation’ as it is sometimes called, is a fancy finance jargon way of saying that you are using a property that you already own to help you buy another one. People do this by using the 'equity' that they have built up over time in their existing property as the deposit for their next purchase. For more on equity, see the other explainer.

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