Providers usually only allow a lending limit exceeding 65% for a 2nd mortgage. In this case it is ranked as subordinate to the 1st mortgage and is normally liable to compulsory amortisation. The interest rate is usually about 0.5 to 1.0% above that of the 1st mortgage.
Example of a possible distribution: The property is worth CHF 1,000,000. The bank grants a 1st mortgage of CHF 650,000 and a 2nd mortgage of CHF 150,000. The remaining amount of CHF 200,000 must be provided by the property owner as personal capital.
