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Mortgage deeds explained
A mortgage deed is a legally binding contract between you (the borrower) and your lender that essentially formalises your mortgage agreement. Find out exactly what a mortgage deed contains and why it matters during the home buying process.
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What is a mortgage deed?
A mortgage deed is a legal document, usually only one or two pages long, that officially ties your mortgage loan to your property. It's the contract between you and your lender that says, "I promise to repay this loan, and I agree to use my property as security for it."
The mortgage deed gives the lender a legal charge over your property, which means they have the right to take possession of the property and sell it if you don’t keep up with your mortgage payments.
Key aspects of a mortgage deed
While exact details can vary, every mortgage deed will contain essential information that needs to be carefully reviewed both by yourself and your solicitor or conveyancer.
Borrower and lender details. Your mortgage deed will clearly state your name (or names if you’re applying for a joint mortgage) and the name of your lender.
Property information. It will include the full address of the property you’re taking out a mortgage to buy.
Legal charge. The legal wording included will create a charge over your property, giving the lender legal rights.
Mortgage details. The mortgage deed will refer to the conditions of your mortgage, a separate document which includes how much you’re borrowing, your interest rate, monthly repayment amount, the length of your mortgage and what will happen if you don’t repay the loan.
Borrower obligations. Some deeds may go into detail beyond the mortgage repayment, such as lender restrictions on property alterations or your responsibility to ensure the property does not fall into disrepair. It’s important you and your solicitor thoroughly review this so you understand your obligations and any restrictions.
Signatures. It must be signed by you (the borrower) and witnessed.
It’s really important you and your solicitor check that all details in the mortgage deed are correct, and that you’re happy with the terms of your mortgage. Now’s your chance to ask your broker or solicitor about anything you don’t fully understand. No question is too small!”Laura Hamilton, Mortgage Expert
Why are mortgage deeds important?
Your mortgage deeds make the arrangement official and legally binding. It ensures the lender has a way to recover their money if the loan isn’t repaid, giving them the protection and security they need to release the mortgage funds.
| Mortgage offer | Mortgage deed |
|---|---|
| This is the document you receive from the lender before the legal work gets serious. It confirms they are willing to lend you a certain amount of money, based on their valuation of the property and their assessment of your finances. Your mortgage offer will detail the interest rate, the term of the mortgage, the monthly repayment amount and any other special conditions. | This comes later in the process. It's the legal contract you sign to accept the terms of your mortgage and secure the loan against your property. You only sign this once you are ready to proceed and your solicitor is preparing for completion. |
Difference between a mortgage deed and your title deeds
Again, two very similar terms with very different meanings. As discussed, a mortgage deed is a legal contract between yourself and your lender confirming the conditions of your mortgage, whereas title deeds provide proof of ownership of the property.
When you take out a mortgage, the lender's charge (created by the mortgage deed) is officially noted on your property's title register at the Land Registry. When you eventually pay off the mortgage, the lender will remove this charge, which will in turn leave your title deeds clear.
How to get a mortgage deed
Signing a mortgage deed is just part of the legal process managed by your solicitor or conveyancer. Once you have received your mortgage offer and your solicitor has conducted all the necessary legal checks on the property, your solicitor will receive the mortgage deed from your lender.
You’ll typically sign the deed shortly before you’re due to exchange contracts and complete the process. Once signed, your solicitor will send the document to your lender to request the mortgage funds.
In some cases, if remortgaging, you may be able to sign your mortgage deed quickly and securely online via the HM Land Registry ‘sign your mortgage deed’ service.
What happens after signing a mortgage deed
Signing your mortgage deeds signals the green light for the final stages of your property purchase to go ahead.
Completion. Your solicitor uses the signed deed as confirmation to request the mortgage funds from your lender. This money is then used to complete the purchase of your new home.
Registration. After completion, your solicitor will send the mortgage deed to HM Land Registry. The Land Registry will update the property's title register to show you as the new owner and to record the lender's legal charge against the property. This means you can’t sell the house without paying off the mortgage first.
Remortgaging. When you switch to a new lender, you are essentially paying off your old mortgage and starting a brand new one. This means you will need to go through a similar legal process again, which includes signing a brand new mortgage deed with your new lender to secure the new loan against your property. Your conveyancer will handle this process for you.
Paying off your mortgage. Once you have paid your mortgage in full, the lender no longer has any legal interest in your property. They’ll instruct HM Land Registry to remove their charge from your property’s title register, meaning you own your home outright.
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Mortgage deeds FAQs
What happens if I need to change a mortgage deed?
Once a mortgage deed is signed and registered, it is a legally binding document. You can't simply amend it. However, if your circumstances change, there are processes you’ll need to follow to get a new or amended mortgage deed:
If you want to add or remove a person from your mortgage, you’ll need to go through a transfer of equity. A new mortgage deed would be created as part of this process.
If you want to borrow more from your existing lender, you’d need to sign a new loan agreement and the lender would secure this additional borrowing with a second legal charge on your property.
If you spot a genuine mistake on your original deed (such as a name spelt wrong), this can be corrected through a ‘deed of rectification’, which your solicitor will prepare.
If you simply want to renegotiate the terms of your mortgage, it’s likely you’ll need to look into remortgaging.
When do I sign the mortgage deed?
You'll sign it near the very end of the home buying process, just before the contracts are exchanged and your solicitor is ready to complete the purchase.
YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
The FCA does not regulate mortgages on commercial or investment buy-to-let properties.
Uswitch makes introductions to Mojo Mortgages to provide mortgage solutions.
Uswitch and Mojo Mortgages are part of the same group of companies. Uswitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website.
Uswitch Limited is registered in England and Wales (Company No 03612689) The Cooperage, 5 Copper Row, London SE1 2LH.
Mojo Mortgages is a trading style of Life's Great Limited which is registered in England and Wales (06246376). Mojo are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215)
Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH. To contact Mojo by phone, please call 0333 123 0012.