A mortgage deed is the legal document that creates the lender's security interest in your property. By signing it, you agree that the lender has a legal charge over your property, meaning they have the right to repossess and sell it if you fail to keep up with your mortgage repayments.
The mortgage deed is prepared by your conveyancer and signed by all borrowers named on the mortgage. It is typically signed alongside the transfer deed (if you are buying) in the days leading up to completion. Your conveyancer will explain the document and witness your signature.
Once signed and the mortgage completes, the deed is registered with the Land Registry along with the lender's charge on the property. The charge remains in place until the mortgage is fully repaid, at which point the lender releases it and the Land Registry record is updated.
Before completion, your conveyancer asks you to come in and sign the mortgage deed. They explain that it gives the lender a legal charge over your new home. You sign it, and it is sent to the Land Registry after completion.
Key Points
- Gives the lender a legal charge over your property
- Must be signed by all borrowers named on the mortgage
- Prepared by your conveyancer and witnessed when you sign
- Registered with the Land Registry after completion
- The charge is removed when the mortgage is fully repaid