The mortgagor is the legal term for the person who borrows money through a mortgage agreement. In plain language, the mortgagor is the homeowner or buyer who takes out the mortgage. By entering into the agreement, the mortgagor pledges their property as security for the loan and agrees to make regular repayments to the lender (the mortgagee).
The mortgagor has obligations under the mortgage agreement, including making repayments on time, maintaining the property in good condition, keeping it insured, and not making significant alterations without the lender's consent. If there are joint borrowers, for example a couple buying together, both are mortgagors and are jointly and individually responsible for the full debt.
Despite pledging the property as security, the mortgagor retains the right to live in and use the property as long as they meet the terms of the mortgage agreement. Ownership transfers fully to the mortgagor once the mortgage is repaid in full and the lender's charge is removed.
You and your partner take out a joint mortgage to buy a home. You are both mortgagors, meaning you are both responsible for the full mortgage debt. You must both keep up the repayments and maintain the property as required by the lender.
Key Points
- The legal term for the mortgage borrower
- Pledges the property as security for the loan
- Must make repayments on time and maintain the property
- Joint borrowers are each liable for the full debt
- Retains the right to live in the property while meeting mortgage obligations