Anyone borrowing against property, or lending money secured by it, will eventually run into the term "deed of mortgage." It sounds technical, but the idea behind it is straightforward — it's the document that turns property into security for a loan.
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
- That the property being offered as security actually belongs to the borrower, and its title is clean
- The exact terms for default — what happens, and how quickly, if 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
Whether you're borrowing against a property or lending with it as security, having the deed of mortgage properly drafted and registered protects both sides — it's worth getting this right at the outset rather than after a dispute over repayment arises.
Discuss a mortgage or loan agreement