Ranking in practice
Ranking determines the order in which recovery proceeds are applied. A second-ranking lender is paid only after the first-ranking debt and the costs of the process are met, which is why ranking is stated on opportunity summaries in generic terms.
The limits of ranking
First ranking does not create value. If the property realises less than the debt and costs, a first-ranking lender can still be short. Ranking should be read alongside the loan-to-value position, the borrower's repayment position and the full offer information.
