WHAT IS MORTGAGE DEED ?
The rules and regulations of the UK Law with regard to property and mortgage are quite complex; therefore, they must be interpreted in a way that there must be no misunderstanding and the transparency between the borrower and the lender remain intact.
The issue of trust between the borrower and lender while buying property in UK is a problem that is caused due to the lack of transparency among the parties involved. To ensure the better implementation of the Mortgage process, there are certain provisions that can help like Mortgage Deed in UK. Let us see what an actual Mortgage Deed is.
What is Mortgage Deed ?
A mortgage Deed is a small piece of document that is read and signed by the two major parties involved in the Mortgaging or Property; i.e., the lender and the borrower. The Mortgage Deed in United Kingdom states that the borrower as well as the lender of the property have agreed to the terms and the conditions written in the Mortgage Deed.
Components of a Mortgage Deed
The Mortgage Deed is duly signed by the borrower as well as the lender of the Mortgage and consists of the following few contents:
- It consists of the Mortgage amount that the 2 parties have agreed upon.
- Rate of Interest on which the Mortgage has been sanctioned.
- Tenure of the Mortgage term during which the Mortgage will be repaid.
- The type of Mortgage is mentioned in the Mortgage Deed.
- Security of the Mortgage which is in almost all cases the property on which the Mortgage is taken.
The Mortgage Deed has a unique reference number on it and identifies the borrower as well as the lender of the Mortgage. A Mortgage Deed is kind of a legal paper that ensures smooth and transparent completion of the Mortgage. The Mortgaging process does not get completed on the basis of the property only, but there must be a kind of guarantee that ensures the credibility of the repayment.
What happens once you sign the Mortgage Deed in UK ?
A Mortgage Deed is one of those important documents upon which, the lender can rely and ensure the safe recovery of the Mortgage amount. It is advised that the Mortgage borrower should read the terms written in the deed with utmost attention as this document is a legally binding contract under the Government of the United Kingdom. After signing and completing the verification for Mortgage Deed, the conveyancer of your deal will have to pay the stamp duty. This final step includes that the information about your mortgage reaches the Land Registry and also that the Mortgage Borrower is the new owner of the property and the Mortgage Lender has an interest in the property.
