Mortgage

A loan secured against a property, usually for the purpose of purchasing the property.

Mortgagee

The lender or institution that makes the loan. We will usually use the term lender.

Mortgagor

The borrower who has taken out the mortgage. We will usually use the term borrower.

Mortgage indemnity insurance

A type of insurance which protects the lender (not the mortgage customer) against losses. This is usually paid for by a higher lending charge payable by the mortgage borrower at the time of taking out the mortgage.

If a mortgaged property is taken into possession by the lender (repossessed) and the money received from the sale does not cover the outstanding mortgage debt, the indemnity insurance provider pays an amount up to the amount of the indemnity to meet any shortfall or loss suffered by the lender.

Monthly repayment

The monthly sum you pay to your lender.

Mortgage clauses

The detailed legal provisions which apply to the mortgage.

Mortgage deed

The legal document that you sign to agree to the terms of the mortgage and that the loan is secured on your property. The mortgage deed is registered at the Land Registry after completion and a note of the lender’s interest is then shown on the charges register of the title of the property.

Mortgage offer

The offer of advance sent to you once your mortgage application has been approved. It sets out the terms of the offer and includes all the financial and other terms.