A deed of mortgage is used when property secures a loan. It gives the lender a legal interest in that property until the debt is repaid.
What a deed of mortgage does
A deed of mortgage is a legal agreement in which a borrower (the mortgagor) offers property as security for a loan from a lender (the mortgagee). If the loan isn't repaid according to the agreed terms, the lender has a legal right to recover the debt from the value of the property, which can include selling it.
Why registration matters
A mortgage that isn't properly registered with the relevant Lands Registry may not be enforceable against third parties. This matters most when a property already has other claims or is later sold to someone unaware of the mortgage. Registration protects the lender's interest and gives it legal priority.
What to check before signing
- Whether the borrower owns the property and has a clear title
- The consequences and timing if a repayment is missed
- Interest calculation and any additional fees built into the agreement
- Whether the mortgage will be properly registered, and who is responsible for that step
An unregistered mortgage can leave a lender without a strong claim if the property changes hands.
For both borrowers and lenders
A properly drafted and registered deed can protect both borrower and lender. Agree the terms before funds are advanced, not after a repayment dispute begins.
Discuss a mortgage or loan agreement