Mortgage deed
What is a mortgage deed?
A mortgage deed is a document on which the mortgagee is provided with a security.
This means that if you have to take out a loan, the mortgagee, the person or company that lends you money, usually banks, can take out a mortgage deed to ensure that they get their money.
The mortgage deed can take security in, for example, your house, so if the loan cannot be repaid or the installments on the loan are defaulted, then the mortgagee can made a forced auction of the house to get his money.
Mortgage deeds provide a security for the mortgagee - a person who lends money to another.
Owner mortgage deed
The difference between a mortgage deed and an owner mortgage deed is that a mortgage deed can only have a loan from one person, with an owner mortgage deed it can contain loans from several different people.
Who prepares a mortgage deed?
You can make the mortgage deed yourself, it costs you nothing. But it can be a difficult process if you do not have the knowlegde. Therefore, we recommend that you get a professional, such as a lawyer, to prepare your mortgage deed.
You can seek help from our coaches here.
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